DBS Checks & Background Checks for SMCR Compliance

DBS and background checks are a fundamental part of the Senior Management and Certificate Regime (SMCR). They are the only way for your firm to prove you have properly assessed the fitness and propriety of your staff. Carrying out the right checks can be the difference between your firm being compliant or not. Be confident in your compliance with our tailored SMCR screening packages.

DBS Checks For FCA Compliance

DBS Checks are a mandatory requirement under the FCA’s Senior Management and Certificate Regime. FCA regulated firms need either Standard or Basic DBS Checks, dependent on the staff members role. 

Standard DBS Checks are mandatory for any employee who is carrying out a Senior Management Function (SMF). This level of DBS Check will search an applicant’s criminal record history for cautions, warnings, reprimands as well as spent and unspent convictions.

For all other employees, a Basic DBS Check is recommended. This level of DBS Check includes a search of the Police National Computer. It will search for any unspent convictions or conditional cautions the applicant may have.

 

Fitness and Propriety

Fitness and Propriety is the benchmark set by the FCA to assess people’s suitability to perform certain roles.

The FCA will only approve an individual to carry out an SMF once they are satisfied they are fit and proper.

However, firms need to satisfy themselves that applicants for SMF roles meet this benchmark before submitting an application to the FCA. Background checks are the only practical way to achieve this.

The three key areas firms must assess are:

  • honesty

  • competence and capability

  • financial soundness

A comprehensive breakdown of these areas can be found in the FCA handbook.

Background CHecks for SMCR

To be able to evidence that your firm has assessed a candidate to this benchmark, background checks are essential. The FCA recommends the following checks:

  • Regulatory Reference Checks

  • Qualification Checks

  • Adverse Financial/Credit Checks

  • Directorship Checks

  • Criminal Record Checks (DBS Checks)

The information provided by these checks would be the minimum expected for an application for an SMF-approved person.

Other useful checks include: International Civil and Criminal Record Checks; Sanctions Checks; Occupational History Checks; and, FCA Checks.

For our comprehensive recommendations, check out the table below.

Which Checks Should I Be Doing For SMCR?

Under SMCR firms need to be able to produce evidence showing they have sufficiently assessed the fitness and propriety of staff. The FCA doesn’t name any checks specifically, but there are certain things that need to be checked.

Our experts have produced the below table to help explain which checks are needed and when they should be carried out.

 
 

Why Personnel Checks?

The Senior Management and Certificate Regime is complicated enough before you even consider background checks. Getting things wrong could leave your organisation liable to problems with the FCA. Working with a partner that has the expertise to support your firm is essential.

Personnel Checks have spent two decades supporting both public and private sector institutions with their background screening. Our experts know everything there is to know about the screening requirements for FCA-regulated firms under SMCR.

Get in touch today to partner with the UK’s highest-rated background screening firm. We’re ready when you are!

Background Screening and FCA Compliance Ebook

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We examine the mandatory requirements for background checks for FCA regulated firms.

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Frequently asked questions

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