FD Capital Announces the Launch of SMF Capital

Today we're announcing the launch of something new from the FD Capital group: SMF Capital, a specialist recruitment practice dedicated to Senior Manager Function appointments within UK financial services.

The new business is now live at www.smfcapital.co.uk.

So why have we launched SMF Capital, and what does it offer regulated firms?

Why SMF Capital?

Since FD Capital was founded in 2018, we've specialised in recruiting Finance Directors, CFOs and senior finance professionals, including fractional and interim appointments.

As that business has grown, we've increasingly worked with FCA-regulated firms where the senior appointment carries an additional dimension: regulatory accountability.

A CFO may be an SMF2. A senior compliance professional may hold SMF16 or SMF17. A Chief Risk Officer may be an SMF4. A Chair or other board-level appointment may also carry an SMF designation.

These aren't ordinary executive appointments.

The individual may need regulatory approval before taking up the function, and the firm needs to be satisfied that the candidate is fit and proper for the responsibilities involved.

We therefore decided that SMF recruitment deserved its own specialist practice.

What Does SMF Capital Do?

SMF Capital recruits Senior Manager Function holders for FCA and PRA-regulated firms.

The practice covers executive and non-executive appointments, permanent, interim and fractional recruitment.

It works with a wide range of regulated businesses, including wealth and investment managers, consumer credit firms, insurers and intermediaries, banks and building societies, payments and fintech businesses, and overseas firms establishing UK operations.

The focus is not simply on finding somebody with an impressive CV.

The recruitment process is built around the question:

Is this person genuinely suitable for the specific regulatory responsibility they are being asked to take on?

That means considering their previous experience, sector knowledge, leadership capability and readiness for personal regulatory accountability.

The Regulator's Test Starts at the Beginning

One of the ideas behind SMF Capital is that the regulator's fit and proper assessment shouldn't be treated as something that happens at the very end of recruitment.

It should influence the search from the beginning.

For example, a candidate might have extensive compliance experience but very limited experience in the particular type of regulated business they are being asked to oversee.

Another candidate might have excellent technical credentials but insufficient seniority or experience of exercising the judgement required by the role.

A conventional recruitment process can miss these distinctions.

SMF Capital aims to identify them early.

Every search is led personally by Adrian Lawrence FCA, rather than being handed to a junior consultant part way through the process.

Permanent, Interim and Fractional SMFs

Not every regulated business needs a full-time senior manager.

A smaller firm might require an experienced compliance professional or MLRO for only part of the working week.

Another business may need an interim senior manager following an unexpected departure.

A newly authorised firm may need senior leadership in place while it develops its permanent structure.

SMF Capital therefore covers permanent, interim and fractional appointments.

The important point is that a fractional or interim arrangement still needs to provide the individual with sufficient time, authority and resources to perform their responsibilities effectively.

SMF Authorisation Support

SMF Capital also helps firms preparing for FCA authorisation.

For a new regulated business, recruiting the right senior managers can be one of the most important parts of building the organisation.

The people named in an application need to be capable of performing the responsibilities assigned to them.

SMF Capital can help firms identify appropriate candidates and build the recruitment process around the regulatory timetable.

This can be particularly valuable for fintechs, investment businesses and other firms building their management team from scratch.

Governance and SMF Structure

The business also provides support with governance and SMF structures.

As a regulated firm grows, its responsibilities can change.

A business may become more complex, move into a different regulatory category, introduce new activities or restructure its senior management team.

At that point, it is worth asking whether the firm's SMF structure still reflects how the business actually operates.

Who is responsible for each area?

Are responsibilities clearly allocated?

Does the firm's documentation accurately reflect reality?

And do the people holding those responsibilities have sufficient experience and capacity?

These questions are at the heart of effective senior management governance.

Who Is Behind SMF Capital?

SMF Capital was founded by Adrian Lawrence FCA, who also founded FD Capital.

Adrian is a Fellow of the ICAEW, holds an ICAEW practising certificate and is a former listed-company Finance Director with more than 25 years' experience as a Chartered Accountant and finance leader.

FD Capital remains focused on Finance Directors and CFOs, while the wider specialist network includes Exec Capital, NED Capital and Accountancy Capital.

SMF Capital is the latest addition, concentrating specifically on Senior Manager Function appointments.

This specialist structure means that if a client needs an SMF2 CFO, a senior compliance appointment, a board appointment or another regulated senior role, the requirement can be directed to the most appropriate specialist practice.

Why Is This Important for FD Capital?

For FD Capital, the launch of SMF Capital is a natural extension of the business.

Finance leadership and regulatory leadership increasingly overlap.

A regulated firm may need a CFO who understands both finance and the responsibilities associated with SMF2.

A growing business may need a fractional compliance officer alongside its finance leadership.

A board restructuring may involve several senior appointments at the same time.

Rather than treating these as generic executive recruitment assignments, the new network provides specialist expertise across the different areas.

A New Resource for the SM&CR

SMF Capital isn't just a recruitment business.

The website also includes a Knowledge Centre, covering subjects such as the fit and proper test, regulatory references, firm tiers, the Conduct Rules, the 12-week rule and the practical mechanics of SMF appointments.

There's also SMF Unlocked, a dedicated podcast exploring the Senior Managers Regime and the practical issues faced by firms and senior managers.

The aim is to make SMF Capital a useful resource for boards, compliance teams, HR professionals, candidates and businesses preparing for authorisation.

Who Should Visit SMF Capital?

If you're a regulated firm recruiting a Senior Manager, the website is designed for you.

If you're preparing an FCA authorisation application and need to build a senior management team, it's relevant to you.

If you're looking for interim or fractional compliance, risk or other SMF support, it's also relevant.

And if you're already an experienced Senior Manager considering your next appointment, SMF Capital provides a confidential way to register with a specialist recruiter.

Many of the senior appointments handled by specialist recruiters are never publicly advertised.

Visit SMF Capital

So, if you work in UK financial services and have a Senior Manager Function recruitment requirement, visit:

www.smfcapital.co.uk

You'll find information about the different SMFs, recruitment services, interim and fractional appointments, authorisation support, governance reviews and current opportunities.

And if you're not sure whether your requirement is actually an SMF appointment, you can contact the team and discuss it.

Final Thoughts

The launch of SMF Capital reflects something we've seen repeatedly through FD Capital's work with regulated businesses.

A Senior Manager appointment isn't simply another senior recruitment assignment.

The individual may carry personal regulatory accountability for a defined area of the business, and the firm needs confidence that the person appointed is genuinely capable of carrying that responsibility.

That means the regulatory dimension needs to be considered from the beginning of the recruitment process.

That's why we've created SMF Capital.

It's a specialist practice focused on Senior Manager Function recruitment for regulated firms, covering permanent, interim and fractional appointments as well as authorisation and governance support.

So, from everyone at FD Capital, we're delighted to announce the launch of SMF Capital.

Visit www.smfcapital.co.uk to find out more.

Thank you for listening to the FD Capital Podcast.