Mortgage advisers looking to ensure that their firm is compliant with the upcoming Senior Managers & Certification Regime (SMCR) need to complete any final preparations now, according to TMA.

The impending regime will replace the current Approved Persons Regime across the rest of the financial services sector from 9 December 2019.

The changes will place more responsibility and accountability with senior managers and other individuals working in almost all authorised firms. Mortgage advisers will account for a large proportion of those affected, and TMA is encouraging intermediaries that haven’t yet taken the necessary steps in order to prepare for the SMCR, to complete their final preparations now.

TMA development director, Lisa Martin, said: “There is still time for adviser firms to become ‘SMCR ready’. It is essential that intermediaries get up to speed on the requirements as a matter of urgency.

“We understand that many firms are feeling daunted by the new regime and still aren’t sure how to prepare for it. The best approach to ensuring compliance is to break the changes down into digestible chunks and tackle them one-by-one.”

On top of suggesting advisers should familiarise themselves with the new changes, TMA is also telling any advisers in senior management roles that they must create a ‘Statement of Responsibilities’ before 9 December, to ensure they are accountable for the key conduct risks set out by the FCA.

Martin continued: “SMCR compliance is well within the grasp of most adviser firms if they are supported with the necessary guidance and tools. It is in advisers’ best interests to understand the new rules and find the simplest and best possible route to preparing for them before the December deadline approaches.”

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