FCA and PRA Launch Parallel Consultations to Strip 139,000 Finance Workers from Annual Certification Checks, Saving Firms an Estimated £2bn

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) announced on 22 October 2026 parallel consultations proposing the most significant overhaul of the Senior Managers and Certification Regime (SM&CR) since it was introduced a decade ago in the aftermath of the 2008 financial crisis. The SM&CR was designed to hold senior decision-makers at regulated financial services firms personally accountable for their conduct and decisions. Under the proposals, the Certification Regime (the layer of the framework that requires approximately 139,000 individuals below senior manager level to undergo annual fitness-and-propriety checks and appear on the Financial Services Register) would be abolished entirely. In its place, firms would self-certify employee suitability, removing the associated administrative overhead. For a range of senior functions, including Chief Actuaries and Chairs of Risk and Audit Committees, mandatory regulator pre-approval would be replaced by direct notification by the firm, though the regulator could still require pre-approval in high-risk cases. Core roles including Chief Executives, Chief Financial Officers and Chairs would continue to require full regulator pre-approval before appointment. The PRA expects the changes to cut its SM&CR pre-approvals by 43% and halve the overall burden of its regime. The Bank of England estimates total savings to firms of around over a 10-year period. The proposals also raise the threshold at which firms must report conduct-rule breaches for most staff below senior manager level. The consultations close on , with final policy expected in 2027. Some reforms will require legislative change, and both regulators have indicated they will be ready to implement quickly once legislation passes. The announcement was made as part of delivered by PRA Deputy Governor Katharine Braddick and FCA Chief Executive Nikhil Rathi.