Why an SMF Vacancy Is Different

Most senior vacancies are a business problem. A Senior Manager vacancy is also a regulatory one. Under the Senior Managers and Certification Regime, each Senior Manager Function exists because the regulators want a named, approved individual accountable for that area. When the holder leaves:

• the firm must notify the regulator that the person has stopped performing the function, using Form C, within the prescribed deadline;
• the responsibilities that person held, including any Prescribed Responsibilities, must be reallocated, and the responsibilities map updated;
• someone must cover the function, either under the temporary cover rules or with approval; and
• the firm must find a successor who can be approved, which takes time.

The FCA’s rules on notifications are in SUP 10C, and our guide to Forms B, C, D and E explains each one. Getting the filings and the cover right in the first few weeks matters: supervisors notice gaps, and a vacancy handled badly can become a supervisory issue in its own right.

The First Two Weeks: What to Do

For an MLRO departure specifically, our guide to what to do when your MLRO resigns sets out a detailed 30-day plan.

Temporary Cover and the 12-Week Rule

The FCA allows firms to arrange temporary cover for a Senior Manager Function without approval in limited circumstances, for up to 12 weeks in a consecutive 12-month period, where the absence is temporary or reasonably unforeseen. It’s a bridge, not a solution. A permanent search, the successor’s notice period and the regulator’s assessment usually take far longer than 12 weeks, so the firm will normally need an approved interim or an approved permanent appointee before the allowance runs out. Our guide to the 12-week rule explains when it applies, and our guide to SMF timing and eligibility answers the common questions.

How We Handle Urgent SMF Replacements

• Same-day call. We take the brief the day you call, including the circumstances of the departure and any regulatory sensitivities.
• Interim shortlist in days. We approach experienced interim Senior Managers available now, prioritising those with recent approval in the same function. See interim MLRO and compliance officer recruitment.
• Permanent search in parallel. We run the permanent search alongside, so the firm isn’t relying on an interim for longer than it needs to.
• Approvability checked first. Every candidate is assessed against the fit and proper test before you see them, because a rejected or delayed application is the last thing an urgent situation needs.
• References started early. We start regulatory references as soon as a preferred candidate emerges.
• Application support. We help with the Form A and Statement of Responsibilities, drawing on our guide to what goes wrong in Form A submissions.

Which Roles We Replace Urgently

Using the Vacancy to Get the Structure Right

An unexpected departure is disruptive, but it is also a chance to ask whether the role is structured correctly. Before recruiting a like-for-like replacement, the board should consider whether the function should be split or combined, whether the firm’s growth means it now needs more senior time, whether a different designation applies, and whether the reasons for the departure point to wider issues. Our guide to SMF succession planning helps boards avoid the next urgent vacancy, and our governance and SMF structure review service can help where the questions are wider.

What Supervisors Look For After a Senior Manager Leaves

When a Senior Manager leaves unexpectedly, supervisors tend to ask the same questions. Why did the person leave, and does the departure point to a disagreement about risk, conduct or resources? Who is accountable for the function today, and were responsibilities reallocated formally? Is anything urgent outstanding, such as suspicious activity decisions, regulatory returns or open remediation actions? And how quickly will an approved successor be in place? A firm that can answer each of these clearly, with board minutes and an updated responsibilities map to support them, is in a far stronger position than one that is still working out who is in charge. Where a departure follows a disagreement, the regulatory reference the firm gives the departing Senior Manager also needs care; see our regulatory reference checklist.

Preventing the Next Urgent Vacancy

The firms that handle Senior Manager departures best have planned for them. A documented deputy for each critical function, a current handover pack, a succession plan that the board reviews and a relationship with a specialist recruiter turn an emergency into a managed process. If your firm has had one urgent SMF vacancy, it’s worth using the experience to make sure the next is easier.

Frequently Asked Questions

Do we have to tell the FCA when a Senior Manager leaves?

Yes. The firm must notify the regulator, using Form C, that the person has ceased to perform the function, within the deadline in the FCA’s rules.

Can someone cover the role without approval?

In limited circumstances, for up to 12 weeks in a 12-month period. Beyond that, or where the rules don’t apply, the person covering must be approved.

How fast can you provide an interim?

For most control functions we can shortlist interim candidates within days.

Should we replace like for like?

Not necessarily. A departure is a good moment to check the designation, the time commitment and whether roles should be combined or split.

Can you run the interim and permanent searches together?

Yes, and we recommend it. It shortens the time the firm relies on interim cover.