Since 9 December 2019, the majority of FCA solo-regulated firms have been subject to the Senior Managers and Certification Regime (SM&CR) including the Conduct Rules which set basic standards of good personal conduct against which the FCA can hold people to account. As such, the rules are enforceable by the FCA and are intended ‘to improve individual accountability and awareness of conduct issues across firms.’
Whilst most firms are now familiar with the Conduct Rules, 2 November 2020 marks the first time that most solo-regulated firms will have to submit an annual notification regarding breaches of the Conduct Rules where disciplinary action has been taken. This is a requirement under section 64C FSMA and requires firms to report details about individuals who have committed breaches of the Conduct Rules, details of what Conduct Rules have been breached and details of disciplinary action taken (issuance of a formal written warning, suspension or dismissal, or the reduction or recovery of a person’s remuneration). The report is called REP008, and must be completed and submitted using Gabriel. The important thing to note, however, is that all firms must submit an annual notification even if there haven’t been any Conduct Rule breaches resulting in disciplinary action at that firm.