First introduced in the banking sector in 2016 in response to significant conduct failings and the 2008 financial crisis, the Senior Managers and Certification Regime (SMCR) is part of the UK regulators’ drive to improve culture, governance, and accountability within financial services firms. The SMCR aims to deter misconduct by improving individual accountability and awareness of conduct issues across firms, and to promote a culture where employees at all levels take personal responsibility for their actions, with good regulatory compliance practices central to its requirements.
This resource offers the latest developments on the SMCR and our London team’s insights into them.
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Join us for a webinar discussing the enforcement, regulatory, and employment legal considerations as the deadline approaches, and issues to monitor for the remainder of 2021.
This event will build on the success of the previous seven summits that C&F has organised on the SMCR. All of these were very well received by delegates, who rated the content and quality of the speakers very highly. This edition of the summit will be delivered virtually, using our bespoke online event platform.
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While the FCA is keen to avoid a “culture of fear,” the introduction and extension of the Senior Managers and Certification Regime (SMCR) imposes personal accountability and liability on a much wider group with significant personal implications for those involved. Partner Melanie Ryan spoke on "Developments in Combating Money Laundering and Financial Crime."
The UK Financial Conduct Authority (FCA) has recently published two speeches reiterating the broad and fundamental importance of diversity and inclusion within financial services. Delivered by the FCA’s executive team, the speeches cover (1) the significant work still to be done to improve diversity and inclusion in the sector; (2) the value of diversity and inclusion and their importance to a healthy culture; and (3) the steps the FCA may take in the future to drive improvement, including potentially changing the way in which it considers senior manager applications and introducing diversity requirements to premium listing rules. Firms are encouraged to take note and to review the adequacy and effectiveness of their current diversity and inclusion arrangements.
All dual-regulated and FCA solo-regulated firms are now under the scope of the Senior Managers & Certification Regime (SMCR), with many working hard in recent months to ensure all aspects of the regime are well embedded. As part of these efforts, it is crucial that firms establish an effective framework to prevent but also detect and manage conduct breaches if they do happen, and when it is necessary, report them.
The UK Financial Conduct Authority recently published Policy Statement 20/12, which sets out the final rules on the extension of the Senior Managers and Certification Regime implementation deadlines for the certification regime and conduct rules.
The UK Financial Conduct Authority recently closed its consultation (CP20/10) to extend the deadline for solo-regulated firms to conduct their first fitness and propriety assessments of certified staff and train all staff on the conduct rules, and updated its webpage with positive and negative indicators firms should consider when conducting the assessments and training. Firms should take action now to prepare for the full implementation of the Senior Managers and Certification Regime.
The Financial Conduct Authority (FCA) began a consultation (CP20/10) on 17 July on the extension of the deadlines by which FCA solo-regulated firms must have first assessed the fitness and propriety of their certified staff, trained staff in the Conduct Rules, and reported directory person data.