On 14 August 2020, the FCA published a new web page relating to the annual conduct rules reporting requirement that the Senior Managers and Certification Regime (SM&CR) introduced for solo-regulated firms. The report is called REP008 and it has been added to all solo regulated firms’ Gabriel schedules.
The new annual reporting requirement asks solo-regulated firms falling under SM&CR to tell the FCA whether disciplinary action has been taken against individuals who are not Senior Managers for breaches of the Conduct Rules.
The report requires details about:
- The individual who has committed the breach;
- The Conduct Rules that have been breached; and
- Any disciplinary action taken.
Disciplinary action means:
- Issuing of a formal written warning;
- Suspension or dismissal; or
- Reduction or recovery of remuneration (clawback)
The FCA expects firms to submit a nil-return if there have not been any Conduct Rule breaches resulting in disciplinary action.
Firms not submitting a REP008 by the reporting deadline will be charged a late return fee of £250.
Firms should also bear in mind, that their reports for next year will need to cover other employees, as well as Certification Staff and Directors who are not Senior Managers. Firms should set up adequate checks and recording procedures to ensure Conduct Rule breaches are reported when required to the FCA.