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SM&CR and Section 250: Where the Regimes Intersect

The Senior Managers and Certification Regime and Section 250 of the Crime and Policing Act 2026 are often confused — but they answer different questions. SM&CR asks whether an individual holds a named FCA role at an authorised firm. Section 250 asks whether an individual plays a significant role in managing a substantial part of any UK organisation's activities, regardless of FCA status.

The SM&CR vs Section 250 comparison sets out the three practical differences. The guides below go deeper on each intersection point — from the functional test to PS26/6 simplification to roles that sit in the gap.

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How do SM&CR and Section 250 differ?

SM&CR vs Section 250: What Is the Difference?

Three differences that change what you actually need to do — scope, consequences, and cadence.

5 min read

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The Section 250 Functional Test and the SM&CR Gap

Why the s.250(3) test reaches beyond the SM&CR-approved population — with worked examples.

9 min read

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SM&CR Approved Persons: A Plain-English Guide for 2026

What approved-person status actually means and where it ends — the baseline for the gap analysis.

7 min read

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Which roles sit in the gap?

Who Qualifies as a Senior Manager Under Section 250? Role-by-Role Analysis

COOs, MLROs, divisional heads, group officers — where the functional test lands for each.

9 min read

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Non-Executive Directors and Section 250: Are They in Scope?

Advisory vs management authority — when an NED is and is not in scope.

8 min read

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The MLRO, COLP, and COFA Under Section 250 — Are Compliance Officers In Their Own Scope?

Applying the s.250(3) functional test to oversight and advisory compliance-officer roles — and when they cross into the senior-manager definition.

8 min read

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Group Entities and Subsidiaries: Who Is a Senior Manager of What

The s.250(3) test runs per entity — how group officers, shared-services heads, and holding-company directors are assessed in group structures.

8 min read

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Does SM&CR coverage protect against Section 250?

Does SM&CR Compliance Protect You from Section 250?

No — different tests, different populations, and PS26/6 widens the gap. Explains why SM&CR work is necessary but not sufficient.

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Section 250 Gap Analysis: The Complete Compliance Checklist

How to compare your SM&CR register against the s.250(3) functional-test population.

5 min read

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Section 250 by sector and structure

Section 250 for Asset Managers and Investment Management Firms

How the s.250(3) functional test maps to investment management structures — fund managers, portfolio managers, and shared-services roles.

7 min read

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Section 250 for Insurance Firms Under Solvency UK

How s.250 interacts with the insurance-specific SM&CR structure and Solvency UK governance requirements.

7 min read

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Section 250 and Partnerships / LLPs

How the attribution mechanism applies to partnerships and LLPs — including designated members and senior partners.

7 min read

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Section 250 and Outsourcing: Third-Party Provider Obligations

When outsourced service providers' senior staff may meet the s.250(3) test, and how to handle counterparty compliance requests.

7 min read

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FCA September 2026 Non-Financial Misconduct Rules: The Section 250 Intersection

How the expanded COCON NFM rules interact with s.250 corporate criminal attribution — two parallel regimes with an overlapping population.

8 min read

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Frequently asked questions

Does SM&CR compliance protect against Section 250 liability?

No. SM&CR and Section 250 use different tests and cover different populations. SM&CR focuses on who holds a named FCA role (SMF or Certified Function) at an authorised firm. Section 250 uses a functional test — whether an individual plays a significant role in managing a substantial part of an organisation's activities (any activities, not just financial ones). An individual can be fully SM&CR compliant and still meet the s.250(3) test, or sit outside SM&CR entirely and meet it. The gap between the two populations is exactly what a Section 250 gap analysis identifies.

What is FCA PS26/6 and how does it affect Section 250 exposure?

FCA PS26/6 made targeted Phase-1 SM&CR changes and signalled that broader Phase-2 reforms may be consulted on later in 2026 if Treasury changes proceed. It did not change the s.250(3) functional test. Firms should re-run their gap analysis whenever PS26/6 implementation changes the SM&CR baseline they rely on.

What is the s.250(3) "significant role" test?

Section 250(3) defines a senior manager as an individual who plays a significant role in (a) the making of decisions about how the whole or a substantial part of the activities of the body corporate or partnership are to be managed or organised, or (b) the managing or organising of the whole or a substantial part of those activities. It is a functional test about organisational authority and decision-making scope — not job title, grade, or FCA registration. It covers all the organisation's activities, not only the financial or regulated ones.

Can someone be inside SM&CR but outside Section 250 scope?

Yes, though it is less common. SM&CR reaches some individuals (for example, certain Certification Regime holders) whose scope of authority within the organisation is specific and limited enough that the s.250(3) "significant role in managing a substantial part" test is not met. The tests are independent, and the mapping runs in both directions.

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