The FCA and PRA will review the Senior Managers and Certification Regime (SM&CR) to reduce regulatory burden and costs for businesses. FCA said the changes will not dilute the “core principle of senior leader accountability.”
The changes will also extend the validity of criminal record checks for senior managers.
The review will include giving companies more time to submit applications for senior managers in case of temporary or unexpected changes.
The changes will also remove the need to certify managers with several overlapping roles.
The FCA said this would reduce the total number of certification roles required by around 15%.
Only the largest and most complex companies will have to meet stricter standards.
The FCA and PRA could continue to streamline the SM&CR and will consult on this.
FCA deputy chief executive Sarah Pritchard said: “These joint reforms will keep consumers and markets protected while making the regime more proportionate. We have also used our current powers to streamline the regime now so that businesses can benefit before future legislation delivers even greater efficiencies.”