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Role Guide

Section 250: What Compliance Directors Need to Maintain Now

As compliance director, the Section 250 gap analysis sits squarely on your desk. You need to identify every role in your firm that may meet the s.250(3) functional test but is not SM&CR-approved, send governance declarations, and produce a PDF/A-3B board evidence pack designed for business-record admissibility. This is not a risk you can escalate. Section 250 creates corporate attribution liability for which there is no adequate-procedures defence.

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TL;DR

As compliance director, the Section 250 gap analysis sits squarely on your desk. You need to identify every role in your firm that may meet the s.250(3) functional test but is not SM&CR-approved, send governance declarations, and produce a PDF/A-3B board evidence pack designed for business-record admissibility. This is not a risk you can escalate. Section 250 creates corporate attribution liability for which there is no adequate-procedures defence. CoverProof automates the SM&CR gap analysis, zero-login declarations, and PDF/A-3B board evidence pack generation that Compliance Directors need to complete before the June 29, 2026 statutory deadline under Section 250 of the Crime and Policing Act 2026.

Your Section 250 obligations

1

Run the gap analysis

Map every individual in a significant role against your SM&CR register. The gap — those in scope for Section 250 but not on the register — is your exposure list. You need this documented, not just known.

2

Send and receive declarations

Every role in the gap should have a documented Section 250 governance declaration. Declarations need to be timestamped, immutable, and traceable back to a specific analysis. A one-line email does not meet this standard.

3

Produce board evidence

Your board needs to be able to show that it identified the gap and acted. The evidence pack must be PDF/A-3B compliant, hash-verifiable, and contain the declaration audit trail. This is what gives a court, regulator, or auditor the record it needs to evaluate what your firm did and when.

4

Handle counterparty obligations

If your firm relies on external counterparties — sub-advisers, introducers, outsource partners — you need written confirmation that they have completed their own Section 250 analysis. Their exposure is your risk.

Your pre-June 29 checklist

  • □Identify all individuals in significant roles (not just SMF holders)
  • □Cross-reference against your FCA register extract
  • □Flag everyone who is in scope but not approved
  • □Send declarations to all flagged individuals
  • □Track RAG status — chase outstanding declarations
  • □Confirm counterparty compliance for all significant third parties
  • □Generate and store the board evidence pack
  • □Brief the board and obtain sign-off
  • □Set calendar reminder for annual renewal

Common questions

What if an individual refuses to provide a declaration?

A refusal to declare is itself a significant risk indicator. Document the refusal, escalate to the board, and seek legal advice. CoverProof's audit trail records all declaration attempts, responses, and refusals — this is part of your evidence pack.

Do I personally face criminal liability as compliance director?

Section 250 attributes a senior manager's underlying offence to the organisation when the statutory conditions are met. As a compliance director, your own SM&CR designation is relevant — but so is whether the firm can show it identified and managed its attribution-risk population. A documented gap analysis is part of the firm's evidential record. Prosecutors may weigh compliance activity when deciding whether to proceed, but Section 250 provides no statutory safe harbour.

How long does the gap analysis take with CoverProof?

Import your SM&CR register extract (typically 5 minutes), and CoverProof's AI identifies your gap within 2 minutes. Sending declarations takes another 5 minutes. The entire initial cycle is under 30 minutes.

The fastest path from compliance director to board sign-off.

CoverProof walks you through every step: import, analyse, declare, evidence. Your board pack is generated automatically as declarations complete. First gap analysis is free — no contract required.

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