FCA clarifies scope of Client Dealing function in SMCR regime

The FCA has published proposals to amend the scope of the new "Client Dealing Function" under the Senior Managers & Certification Regime ("SMCR").

The new Client Dealing Function under the SMCR has been expanded from the CF30 function to apply to any person "dealing with clients". Understandably, the FCA received a large number of requests for further clarity on whether this function was intended to include staff who interact with clients on a purely administrative basis – where the risk of consumer harm is unlikely.

The FCA has acknowledged that, as the rules are drafted, a number of low-risk individuals would be caught. The FCA therefore intends to amend the scope of the Client Dealing Function to exclude any individual who has no scope to choose, decide or reach a judgment on what should be done in a given situation, and whose tasks do not require them to exercise significant skill. Under the proposed amendment, firms will therefore have to exercise judgment on whether a role requires certification or not.

It is good to see common sense prevailing in this case and the FCA giving a clear indication that some individuals can be taken out of the certification regime.

The FCA's consultation on this proposed amendment will close on 23 April 2019.


we understand that uncertainty exists on whether administrative functions would be in scope of the Client Dealing Function in the certification regime.