A Guide to Hiring for FCA Regulated Positions SMF16 & SMF17

Hiring for Financial Conduct Authority (FCA)-regulated roles is a responsibility that goes beyond simply filling vacancies. For financial firms, appointing the right professionals to Senior Management Functions (SMF16 and SMF17) is critical to maintaining regulatory compliance, mitigating risk, and ensuring ethical operations. These positions are more than just titles; they represent the pillars of a financial services firm’s integrity and long-term sustainability in an ever-evolving financial sector.

The FCA plays an essential role in safeguarding the UK’s financial markets, enforcing regulations designed to promote transparency, integrity, and consumer protection. Within this regulatory framework, SMF16 and SMF17 each carry significant, yet distinct responsibilities. The SMF16 role focuses on compliance oversight, ensuring that a firm operates within legal boundaries, advising on policies, and preventing compliance breaches. On the other hand, SMF17 oversees money laundering reporting, combating financial crime by managing anti-money laundering (AML) strategies, monitoring transactions, and flagging suspicious activities. Both roles require not only technical expertise but also strong leadership and strategic decision-making capabilities.

The Challenge of Finding the Right Candidates

Hiring for SMF positions requires a nuanced approach. While academic qualifications and work experience are important, they’re not enough on their own. Candidates for these critical roles must possess a deep understanding of FCA regulations, a sharp analytical mind, and the ability to navigate complex compliance challenges. To identify the best fit, firms should employ a structured recruitment strategy, which includes sourcing talent from specialised pools, leveraging industry networks, and ensuring rigorous screening processes that verify FCA approvals. Competency-based interviews are invaluable in assessing a candidate’s problem-solving skills, regulatory knowledge, and leadership potential.

The SMF16 Job Description

The SMF16 Compliance Oversight role is a critical leadership position that demands exceptional regulatory expertise and strategic acumen. Typically, this professional is responsible developing, implementing, and maintaining comprehensive compliance frameworks that protect the organisation from potential regulatory breaches. Key responsibilities include conducting regular risk assessments, designing robust internal policies, providing expert guidance to senior management on regulatory matters, and ensuring the organisation's operations consistently align with FCA requirements.

The ideal candidate will possess not only in-depth knowledge of financial regulations but also strong communication skills to effectively translate complex compliance requirements across different organisational levels. They must be proactive in identifying potential compliance risks, implementing mitigation strategies, and maintaining meticulous documentation that demonstrates the firm's commitment to regulatory adherence. Moreover, the SMF16 role requires a forward-thinking approach, continuously monitoring changes in regulatory landscapes and adapting the organisation's compliance strategies accordingly.

The SMF17 Job Description

The SMF17 Money Laundering Reporting Officer (MLRO) role is a pivotal position at the forefront of financial crime prevention, requiring exceptional analytical skills and unwavering ethical standards. This professional serves as the organisation's primary guardian against money laundering and terrorist financing risks, responsible for developing and implementing comprehensive anti-money laundering (AML) strategies. Key responsibilities include conducting sophisticated transaction monitoring, performing detailed customer due diligence, investigating and reporting suspicious activities to the relevant authorities, and maintaining robust risk assessment protocols.

The ideal candidate will possess a deep understanding of complex financial regulations, advanced risk management techniques, and the ability to navigate intricate legal frameworks. They must demonstrate exceptional judgement in identifying potential financial crimes, maintaining meticulous records, and ensuring the organisation's compliance with the latest FCA and international AML regulations. Beyond technical expertise, the SMF17 role demands strong leadership capabilities to educate and guide teams, create a culture of compliance, and implement proactive measures that protect the organisation's integrity and reputation in an increasingly complex financial landscape.

Onboarding and Continuous Learning: Keys to Success

Once the right professionals are hired, the next step is a thorough onboarding and training process. Financial regulations are constantly evolving, so continuous education is crucial. New hires should receive a structured orientation on the firm’s compliance practices, ongoing regulatory updates, and effective risk management strategies. An effective integration plan goes beyond ensuring compliance on paper, it ensures that SMF professionals are fully embedded within the firm’s culture of integrity, accountability, and excellence.

Building a Sustainable Talent Pipeline

A proactive, long-term recruitment strategy is vital for building a sustainable talent pool for SMF roles. This means cultivating ongoing relationships with experienced compliance recruitment agencies who have been maintaining internal databases of pre-qualified candidates, and crafting clear, compelling job descriptions that reflect the importance of these roles. Firms should also regularly audit their recruitment practices to ensure adherence to FCA guidelines, minimising the risk of non-compliance and regulatory scrutiny.

Why Your Hiring Strategy Matters

Hiring for FCA-regulated positions isn’t just about filling a vacancy, it’s about securing the trust of regulators, clients, and the public. A strong compliance and financial crime prevention framework is essential for maintaining a strong reputation in the financial industry. By prioritising a strategic, meticulous approach to hiring for SMF16 and SMF17 positions, firms not only protect themselves from regulatory risks but also strengthen their competitive edge. For organisations looking to build a resilient, compliant leadership team, partnering with a specialist recruiter can be the key to finding top-tier compliance professionals who align with both regulatory requirements and the firm’s values.

How Rutherford Can Help

Rutherford is a leading compliance recruitment agency who has been specialising in financial crime and compliance recruitment for over a decade. We work solely with financial and legal services firms, meaning that we have a deep understanding of the requirements needed for a SMF16 or SMF17, especially when it comes to cultural fit.

Whether you are a SMF16 or SMF17 looking for a new role or a financial services firm looking to secure their next FCA-regulated hire, reach out today to our financial crime and compliance recruitment specialists for a confidential conversation.