Guidance

SoP – Conditions, time limits and variations of approval

Chapter

Performing an SMF after a time limit lapses

Printed on: 06/11/2024

Rulebook at: 10/12/2018

7

Performing an SMF after a time limit lapses

26.

Should an individual continue to perform an SMF following expiry of a time-limited approval, they will be deemed to be performing an SMF without approval and may be liable to penalties under section 63A of FSMA.[7]

  • 10/12/2018

27.

The firm may also be liable under section 59(1) of FSMA for failing to take reasonable care to ensure that the individual does not perform an SMF without approval.

 

  • 10/12/2018

28.

Moreover, the Senior Manager responsible for managing or overseeing the firm’s performance of its obligations under the Senior Managers Regime (under Allocation of Responsibilities 4.1(1), Insurance – Allocation of Responsibilities 3.1(1A), Large Non-Solvency II Firms – Allocation of Responsibilities 3.1(1A), or Non-solvency II Firms – Allocation of Responsibilities 3.1(1A)) may be guilty of misconduct under section 66B(5) of FSMA if they did not take reasonable steps to avoid the contravention of section 59(1) of FSMA occurring or continuing.[8]

  • 8. In addition, under section 66B (3) of FSMA, any Senior Manager or Certified employee who was knowingly concerned in the firm’s breach of section 59(1) of FSMA would also be guilty of misconduct.
  • 10/12/2018

29.

Firms must remain aware of the expiry of all time-limited approvals and promptly inform the regulator of any steps they intend, or may be required, to take ahead of their expiry.

  • 10/12/2018