How often is the fitness and propriety of Senior Management Functions (SMFs) assessed according to SMCR?

The fitness and propriety of Senior Management Functions (SMFs) is assessed during multiple key points as outlined by the Senior Managers and Certification Regime (SMCR). This approach ensures that individuals in these critical roles are continually evaluated for their suitability to perform their responsibilities effectively and ethically.

The assessment occurs upon recruitment to ensure that new hires meet the required standards before assuming their roles. Additionally, annual evaluations are conducted to reassess their fitness, taking into consideration any changes in their circumstances or performance. Importantly, the assessment is also required after any significant role changes to address new responsibilities and challenges the individual may face. This comprehensive assessment process is designed to protect the integrity of financial services by ensuring that only qualified individuals hold senior management positions.

This multifaceted approach is crucial in maintaining regulatory compliance and instilling trust in the financial system, reflecting a robust framework for governance within organizations.