On 7 January 2019, the PRA issued a note which contains FAQs which seek to clarify the interaction between its proposals for applying the Senior Managers and Certification Regime (SM&CR) to firms in the temporary permissions regime (TPR) and the FCA’s equivalent proposals.
The FAQs cover the following questions:
- How does the SM&CR currently apply to EEA and third country branches respectively?
- How do the PRA and FCA propose to apply the SM&CR to EEA branches which enter into the TPR?
- What will be the process for obtaining deemed TPR approval for PRA senior management functions (SMFs)?
- Why do the PRA and FCA have different proposals for applying the SM&CR to firms in the TPR?
- How will the PRA’s and FCA’s proposals for applying the SM&CR to firms in the TPR interact in practice? In particular, where an individual holds concurrent, temporary approvals as a FCA SMF21 and a PRA SMF19?
- Would an EEA London branch have to maintain two sets of Management Responsibilities Maps and Terms of Reference (one for the EEA branch and another set for the third-country branch) will there be parallel governance committees as a result?