The FCA and PRA Announce Streamlined Reforms to the Senior Managers and Certification Regime On April 22, 2026, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) announced a series of reforms to the Senior Managers and Certification Regime (SM&CR) aimed at reducing regulatory burden while maintaining core accountability principles. The changes, described as the first phase of a multi-stage package, are designed to help firms comply more easily and at lower cost. The reforms include giving firms more time to submit senior manager applications following unexpected or temporary changes. They too remove the requirement to certify individuals for multiple overlapping functions, which is expected to reduce the total number of certification roles by approximately 15%. Annual checks to confirm individuals as ‘fit and proper’ will be streamlined. Enhanced standards will now apply only to larger, more complex firms, as many of the thresholds triggering these requirements have been increased by 30%. The definition of certain senior management roles will be clarified to improve understanding. Firms will also receive more time to report updates to senior manager responsibilities and to update the directory of certified staff. The validity period for criminal record checks used in senior manager applications will be extended prior to submission. The government’s response to a 2025 consultation includes proposals to remove the Certification Regime from legislation and to offer regulators greater flexibility to reduce the number of senior management functions requiring pre-approval. The FCA and PRA plan to consult on further changes later in 2026, leveraging any increased legislative freedom as part of the Leeds reforms initiative, which aims to halve the SM&CR’s regulatory impact on firms. The regulators emphasized that the core principle of senior leader accountability remains unchanged.
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