CII R01 Senior Managers and Certification Regime (SM&CR)

Question 1

What does the acronym SM&CR stand for in UK financial services regulation?

Accepted Answer

Senior Managers and Certification Regime

Answer

Senior Management and Compliance Regime

Answer

Senior Management and Conduct Requirements

Answer

Senior Managers and Compliance Rules

Question 2

When did the Senior Managers and Certification Regime (SM&CR) first come into effect for banks and major investment firms?

Accepted Answer

January 2016

Answer

March 2016

Answer

January 2018

Answer

December 2019

Question 3

Under SM&CR, which category applies to firms with the most complex structures and highest potential market impact?

Accepted Answer

Enhanced firms

Answer

Core firms

Answer

Limited Scope firms

Answer

Significant firms

Question 4

What is the primary purpose of a Statement of Responsibilities under SM&CR?

Accepted Answer

To set out clearly what a Senior Manager is responsible and accountable for

Answer

To document a firm's complaints handling procedures

Answer

To list all approved persons within a firm

Answer

To record a firm's compliance monitoring activities

Question 5

Under SM&CR, who is responsible for conducting an annual fitness and propriety assessment of certified persons?

Accepted Answer

The firm itself

Answer

The FCA directly

Answer

The PRA directly

Answer

An independent third-party assessor

Question 6

Which of the following is an example of a Senior Manager Function (SMF) requiring direct FCA pre-approval?

Accepted Answer

Chief Executive Officer

Answer

Customer relationship manager

Answer

Compliance analyst

Answer

Risk administrator

Question 7

What is the 'duty of responsibility' that applies to Senior Managers under SM&CR?

Accepted Answer

Senior Managers can be held accountable if they fail to take reasonable steps to prevent regulatory breaches in their area

Answer

Senior Managers must personally approve all customer-facing transactions

Answer

Senior Managers must personally train all employees in their department

Answer

Senior Managers are automatically liable for any regulatory breach by their firm