# UK Regulators Propose Ending Certification Rules for 139,000 Staff

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/39314
Published: 2026-10-23T20:58:32.000Z
Updated: 2026-10-23T20:58:32.000Z
Section: Regulation

> The proposal covers firms due to enter the regime, including cryptoasset firms, and projects about £2 billion in savings over 10 years.

The United Kingdom’s Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) proposed removing a certification system covering about 139,000 people below senior-manager level, with the changes also extending to cryptoasset firms due to enter the regime.

The Certification Regime is part of the Senior Managers and Certification Regime (SM&CR), introduced for banks in 2016 and later extended across financial services. Senior-manager rules set accountability requirements for senior roles, while certification covers certain staff below that level. The proposal is part of Phase 2 of a review; Phase 1 rules were published in April 2026.

The plan would end fitness-and-propriety checks when covered staff are hired and annually, as well as certificates and regulatory references for people who were previously certified. The FCA Directory would be retired, while relevant information about firms and senior-manager function holders would remain on the FCA Register.

The proposed changes are estimated to save firms about £2 billion over 10 years. Recurring annual compliance savings are estimated at £229.9 million, alongside £61.7 million in one-time transition costs. The 10-year net present value is estimated at £1.91 billion.

Some senior roles, including chief actuaries and chairs of risk and audit committees, would move from regulatory preapproval to notification. Regulators could still require prior approval in high-risk cases. CEO, CFO and chair roles would remain subject to prior approval.

The FCA also proposes simplifying Conduct Rule training and raising the breach-reporting threshold for most non-senior staff. The conduct rules themselves would remain.

“These proposals keep checks in place for the most important roles, meaning individuals are accountable for their actions,” said Katharine Braddick, Deputy Governor for Prudential Regulation and CEO of the PRA.

The consultations close Jan. 22, 2027. The FCA expects to publish final requirements in the first half of 2027, with implementation about six months later. The changes depend on legislation being passed and brought into force.