On January 27, the Financial Conduct Authority (FCA) announced plans to consult on the application of the Senior Managers Regime (Regime) to individuals with overall responsibility for a firm’s legal function.

The FCA acknowledged uncertainties in the market regarding whether individuals with overall responsibility for a firm’s legal function would require approval under the Regime. It also noted concerns that if such individuals were to be brought within the Regime, they might be required by regulators to disclose otherwise privileged information.

The FCA indicated that it will not be able to conclude its consultation before the Regime comes into force. However, it confirmed that so long as firms have made a “good faith” decision regarding whether an individual with responsibility for a firm’s legal function is captured by the requirements of the Regime (based on all published rules and communications), they “should not need to change their approach in the interim.”

A copy of the FCA’s announcement can be found here.