Navigating SMF3 Responsibilities: Compliance & Personal Accountability for Executive Directors

Introduction

The Executive Director function (SMF3) carries substantial personal accountability under SMCR. Unlike the CEO who has overall responsibility for the firm, Executive Directors are accountable for specific business areas allocated to them.

Recent FCA enforcement shows that Executive Directors cannot rely on delegation or collective board responsibility to avoid personal liability. The Duty of Responsibility means that if a breach occurs within your area, then you must demonstrate the reasonable steps you have taken to prevent it.

This session provides practical guidance for current SMF3 holders and those expecting to take the function. You will gain clarity on defining and documenting your responsibilities, what reasonable steps looks like in practice and how to navigate the relationship between collective board accountability and individual SMCR obligations.

What You Will Learn

This live and interactive course will cover the following:

• Understanding the SMF3 Mandate
• What distinguishes SMF3 from other governing functions
• Statements of Responsibilities vs job descriptions
• What the FCA expects when assessing reasonable steps
• Governance, Oversight and Delegation
• Collective committee responsibility vs individual accountability
• FCA expectations on delegation and proportionate supervision
• Your duty to escalate
• Risk Management
• Identifying risks within your allocated areas
• Working effectively with the SMF16 and control functions
• Avoiding gaps and overlaps with other SMF holders
• Regulatory Engagement
• Handling regulatory calls and information requests
• Learning from recent enforcement cases
• Practical steps to protect yourself

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.