Quick Answers

Timing Questions

Can a Senior Manager start before they’re approved?

Under the Senior Managers and Certification Regime, nobody can perform a Senior Manager Function until the regulator has approved them. They can join the firm in another capacity, for example to learn the business while the application is decided, but they mustn’t perform the function or take the decisions that belong to it. Where a Senior Manager leaves unexpectedly, the 12-week rule allows someone to cover temporarily, and since the April 2026 reforms an approval application must be submitted within those 12 weeks if they’re to continue.

Can we submit the application while the candidate is still serving notice?

Yes, and it’s the single best way to shorten the timetable. The regulator can take up to three months to decide a complete application. Submitting as soon as the offer is accepted means approval can arrive around the time the candidate is free to join. Our SMF appointment timeline shows how the stages fit together.

What about garden leave?

A candidate on garden leave is still employed by their current firm, so they can’t usually join you until it ends, unless their employer releases them early. Plan the approval around the leaving date, and discuss early release with the candidate. Our post on structuring an SMF offer covers notice periods and buy-outs.

Does approval at another firm carry across?

No. Approval is specific to the firm and the function. A candidate who holds SMF16 at their current firm still needs a new approval to hold SMF16 at yours, although an existing approval is strong evidence of fitness and usually makes the application straightforward.

Eligibility Questions

Can a Senior Manager work part-time?

Yes. The test is whether the time is adequate for the function at your firm. Part-time and fractional Senior Managers are common at smaller firms, particularly in compliance and MLRO roles. The application should explain the time commitment and the individual’s other roles. See fractional and interim SMF cover.

Can a Senior Manager be based overseas or work remotely?

Remote and hybrid working within the UK is common and rarely an issue. Being based outside the UK is more complicated. Some group-level Senior Managers are based abroad, but the regulators will want to see that the function is performed effectively for the UK firm. The FCA expects a firm’s MLRO to be based in the UK. For UK subsidiaries of overseas groups, see our article on group SMF roles. Every candidate must also have the right to work in the UK where the role requires it.

Can we appoint someone with a past regulatory issue or Conduct Rules breach?

A past issue doesn’t automatically rule someone out. The regulator considers how serious and relevant it was, how long ago it happened, what the individual has done since and, crucially, whether it has been disclosed openly. Non-disclosure is usually treated more seriously than the original matter. Check this early, through the candidate and their regulatory references, and disclose it fully in the application. Our pre-offer checks checklist covers how to approach it.

Can a founder or major shareholder hold a Senior Manager Function?

Yes, with approval, like anyone else. Shareholders who hold or acquire significant control of a regulated firm may also need separate change in control approval. The two processes are different: one assesses them as a controller, the other as a Senior Manager.

Can an interim cover more than one function?

Yes, if they have the expertise and time for each. A common example is an interim compliance officer who also acts as MLRO. The regulator will look at the combined workload, as it would for a permanent holder. See our page on combining Senior Manager roles.

Can we appoint someone who has never held a Senior Manager Function?

Yes. Firms appoint first-time Senior Managers regularly. The application needs to show why they’re ready and how any gaps will be covered. See hiring your first Senior Manager.

Can the same person hold Senior Manager Functions at unrelated firms?

Yes, with approval at each, as many fractional compliance officers and MLROs do. Each firm should understand the individual’s other commitments and how conflicts between clients are handled.

Before You Make the Offer

Frequently Asked Questions

How long does SMF approval take?

The regulator can take up to three months once a complete application is submitted, sometimes longer if it has questions or wants an interview.

What happens if approval is refused after the candidate has joined?

They can’t perform the function. The offer should say what happens in that case. Refusals are rare where candidates have been properly checked.

Can we withdraw an application?

Yes. Firms sometimes withdraw an application if it becomes clear it won’t succeed, rather than risk a formal refusal.

Does the candidate need to be interviewed by the regulator?

Not always. Interviews are more common for significant roles, dual-regulated firms and first-time applicants.