The FCA waives rules either by waivers or by modifications-by-consent, which require the firm that wants to take advantage of a relaxation of the rules to ask the FCA for permission to do so. This decision entails a modification-by-consent of rule SUP10.3.13R and is available to all firms regulated solely by the FCA.

It also allows any firm to allocate an absent senior manager’s prescribed responsibilities to the person who is covering for him .

The idea is to alleviate organisational problems and need not only apply if the senior manager in question is suffering from the virus. Firms can apply for the modification-by-consent as a precautionary measure, in advance of actually needing it. It will take effect from the date on which the firm applies for it and the opportunity to use it will end on 30 April 2021.

Mark Turner, the managing director for compliance and regulatory consulting at Duff & Phelps, told Compliance Matters: “This is a pragmatic and proportionate approach from the FCA. Getting a new senior manager approved is never an easy feat, especially under a country-wide lockdown. Every firms’ circumstances are different and the FCA acknowledges that they need to show some flexibility in enforcement.

"However, this does not mean a free-for-all for firms to do what they like during these unprecedented times. Accountability will ultimately still be with the CEOs and boards and if there are issues, the FCA still has the power to act.”