The Chief Executive Function (SMF1): A Practical Masterclass

Introduction

The Chief Executive function, SMF1, is the most senior executive position within SMCR. Responsibility for the conduct of the whole business sits with the SMF1 holder. It cannot be delegated away.

The FCA holds CEOs personally accountable for significant breaches, poor culture and governance failures. The Duty of Responsibility sets a high bar. You need to show you took reasonable steps to prevent breaches across every part of the firm.

This practical three-hour workshop is designed for current and prospective SMF1 holders. Through discussion, case studies and practical examples, you'll explore what effective leadership under SMCR looks like in practice. You get a proper run at your Statement of Responsibilities, time to talk through the boundary between board and individual accountability with people wrestling with the same questions, and a chance to raise the situations that don't fit neatly into a textbook answer.

What You Will Learn

This course will cover the following:

• Taking on the CEO Role:
• Why SMF1 requires FCA pre-approval before an individual can begin the role
• What has changed under the FCA's 2026 SMCR reforms, including the amended 12-week rule and the extended validity period for criminal record checks
• What the FCA looks for in an SMF1 candidate and what to expect at interview
• Securing a proper handover and the personal liability implications of an incomplete one
• Why early identification of existing problems matters in the first 100 days
• Running the Business:
• Setting strategic direction, with oversight of products, services and product governance
• Setting and monitoring risk appetite across the three lines of defence
• Financial crime, operational resilience and prudential oversight
• Culture, Conduct & Threshold Conditions:
• Personal accountability for firm culture, including non-financial misconduct
• Setting tone from the top, and its relevance to Consumer Duty outcomes
• Threshold conditions, including the ongoing regulatory assessment of your business plan and strategy
• The Architecture of Accountability:
• Allocation of prescribed responsibilities, and building an effective Statement of Responsibilities
• The management responsibilities map, and demonstrating there are no gaps in accountability
• Handover procedures between Senior Management Functions, and why the FCA expects these to be documented
• The purpose of governance forums from a regulatory perspective
• Staying in Control:
• Reading the relationship, recognising the signals that tell you where you stand with your regulator
• Building the kind of regulatory relationship that gives you room to raise issues on your own terms
• Why a strong Chief Executive is the one the FCA hears from first, not the one it comes looking for first
• Keeping accountability where it belongs, so your team is protected and your own position stays sound