The Chief Executive Function (SMF1): Leading a Firm Under the FCA & PRA Regimes

Introduction

The Chief Executive function (SMF1) carries the ultimate executive responsibility for the conduct, governance, and financial soundness of a firm under the Senior Managers and Certification Regime (SMCR). While an SMF1 holder must delegate tasks across executive teams, regulatory accountability cannot be delegated away. Both the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) maintain high expectations for SMF1 holders regarding oversight, culture, operational resilience, and financial soundness.

This comprehensive 3-hour session provides practical, evidence-based guidance on how to define your SMF1 mandate, manage cross-functional risk, embed a sound conduct culture and establish a robust audit trail to evidence ‘reasonable steps’ under regulatory scrutiny.

What You Will Learn

This course will cover the following:

• The SMF1 Mandate Under FCA & PRA Rules
• Statements of Responsibilities (SoR) & Management Responsibilities Maps (MRM)
• Operationalising the ‘Duty of Responsibility’ & ‘Reasonable Steps’
• Executive Governance & Board Interface
• Culture, Tone from the Top & Conduct Rules
• Consumer Duty & Market Conduct (FCA Focus)
• Strategic Risk Appetite & Three Lines Model
• Financial Soundness & Prudential Oversight (PRA & FCA Focus)
• Financial Crime & Operational Resilience
• Strategic Regulatory Engagement
• Enforcement, Personal Liability & Lessons Learned
• Succession, Transition & Practical Checklist