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

The Certification Regime covers employees in roles that could cause significant harm to customers or the firm, sitting below the level of Senior Manager Functions.

Question 2

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

Accepted Answer

At least annually

Answer

Firms must certify employees in certification functions as fit and proper at least annually, ensuring ongoing suitability is maintained.

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

Individual Conduct Rule 1 requires individuals to act with integrity, meaning being honest, open, and straightforward in all their professional dealings.

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 Regulatory Reference is a mandatory document that regulated firms must request and provide when individuals move between regulated firms, covering employment history and any fitness concerns.

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

Conduct Rules apply to virtually all employees of FCA-regulated firms, with only ancillary staff who have no involvement in the firm's regulated activities excluded.

CII R01 Practice Test

CII R01 Practice Test

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