CII R01 Senior Managers and Certification Regime (SM&CR) 2

Question 1

Which employees are subject to the Certification Regime under SM&CR?

Accepted Answer

Employees in roles that could cause significant harm to customers or the firm, below Senior Manager level

Answer

All employees of an FCA-regulated firm

Answer

Only board-level executives

Answer

Only employees who deal directly with retail customers

Question 2

How frequently must firms certify the fitness and propriety of employees under the Certification Regime?

Accepted Answer

At least annually

Answer

Every 6 months

Answer

Every 2 years

Answer

Every 3 years

Question 3

Individual Conduct Rule 1 under SM&CR states that you must act with integrity. Which of the following best reflects this principle?

Accepted Answer

Being honest and straightforward in all dealings

Answer

Always prioritising firm profits over customer needs

Answer

Reporting all customer complaints within 24 hours

Answer

Obtaining written consent for all customer communications

Question 4

What is a Regulatory Reference under SM&CR?

Accepted Answer

A document disclosing employment history and fitness information about an individual moving between regulated firms

Answer

A reference from the FCA confirming a firm's authorisation status

Answer

A letter from a Senior Manager endorsing a junior employee's promotion

Answer

A report submitted to the FCA about suspected misconduct by a third party

Question 5

To which individuals do the FCA's Individual Conduct Rules apply under SM&CR?

Accepted Answer

All employees of FCA-regulated firms, except ancillary staff such as receptionists and cleaners

Answer

Only Senior Managers and certified persons

Answer

Only Senior Managers

Answer

Only employees with direct customer contact

Question 6

What is the primary distinction between the Senior Managers Regime and the Certification Regime?

Accepted Answer

Senior Manager Functions require prior FCA approval, while firms certify their own employees under the Certification Regime

Answer

Senior Managers are employed by the FCA, while certified persons work for regulated firms

Answer

Senior Managers handle customer complaints while certified persons handle sales

Answer

Senior Managers are subject to criminal law while certified persons are only subject to civil law

Question 7

What must a firm include in a Regulatory Reference provided for a former employee under SM&CR?

Accepted Answer

Any Conduct Rule breaches within the past six years and whether the person was dismissed or asked to resign for fitness reasons

Answer

Only positive achievements and qualifications held

Answer

Only the confirmed dates of employment

Answer

A full psychological assessment of the individual's suitability