Editor's message: In the last 10 years, the financial services sector has had to cope with a major regulatory shake-up following the global financial crisis of 2008 and the series of financial scandals that came to light. The financial changes have not yet ended and continue at a pace.
MiFID II introduced a new regulatory framework for the European financial industry. MiFID II reaches across the financial services sector and affects nearly all aspects of finance, including: personal transactions and inducements; recruitment; monitoring telephone and electronic communications; training and competence requirements; and remuneration.
Turning to the new regimes, the Senior Managers Regime (SMR) and the Certification Regime (CR) were extended to insurers on 10 December 2018, and to all firms authorised by the FCA on 9 December 2019.
And to complement the aims of the SMR and CR, the FCA is introducing a new central directory. The directory will contain details of directors and senior managers, all staff certified as fit and proper by their firm, and all other important individuals who undertake business with clients and require a qualification to do so. The directory is expected to go live in March 2020.
The evolving regulatory landscape can be challenging for financial organisations. Our financial services manual will help you as it covers the key aspects of the new regulatory world, including the SMR and CR, MiFID II, new rules and requirements, practical implications and future developments.
Fiona Cuming, employment law editor
Updated to include the details of two new pay awards across the sector.
In Kirk v Citibank NA and others, an employment tribunal held that a senior banker who was dismissed following a redundancy process was subjected to direct age discrimination and unfairly dismissed.
Updated to take into account the extension of the SMR and CR to all FCA-authorised firms on 9 December 2019.
In Ward v Fiducia Comprehensive Financial Planning Ltd, an employment tribunal upheld a claim for constructive unfair dismissal, finding that the employer had put inappropriate and excessive pressure on the employee to agree to an extended restrictive covenant following his resignation.
Updated to include information on the FCA's findings on the implementation of the rules on research unbundling.
Updated to reflect the European Council's approval of the Directive to strengthen whistleblower protection.
The Senior Managers and Certification Regime (SMCR) will apply to all Financial Conduct Authority (FCA) solo-regulated firms from 9 December 2019. In the second of her series of four articles, Sarah Leslie provides a checklist of the key steps that firms must take to prepare for its arrival, and the timeline.
The Senior Managers and Certification Regime (SMCR) will apply to all Financial Conduct Authority (FCA) solo-regulated firms from 9 December 2019. In the first in a series of four articles, Sarah Leslie sets out the key elements of the new regime, and looks at the new directory.
In the last in her series of four articles on the extension of the Senior Manager and Certification Regime (SMCR) to all Financial Conduct Authority (FCA) solo-regulated firms, Sarah Leslie looks at what steps firms need to take in relation to the new conduct rules, employment contracts, and policies.
In the third in her series of four articles on the extension of the Senior Manager and Certification Regime (SMCR) to all Financial Conduct Authority (FCA) solo-regulated firms, Sarah Leslie looks at what steps firms need to take in relation to statements of responsibilities, assessing fitness and propriety, and regulatory references.
HR and legal information and guidance relating to employers in the financial services sector.