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 virtual webinar where we will discuss the enforcement, regulatory, and employment legal considerations facing the financial services industry.
Litigation partner Melanie Ryan moderated a panel discussion on “European Regulatory Co-operation and Enforcement: What are the Implications for UK Based Firms?” at the City & Financial Global’s Market Abuse and Market Manipulation Summit.
Partner Melanie Ryan spoke on “Handling the investigation process: understanding the FCA’s remit, scope of investigation and powers,” and partner Chris Warren-Smith chaired the afternoon sessions.
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.
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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."
Lawyers from our employment and investment management teams looked at how financial services firms can best prepare for this change to UK operations. The session focused on key elements of SMCR and the pain points experienced by others already subject to the regime.
Morgan Lewis was a proud sponsor of the 2019 City and Financial Senior Managers and Certification Regime (SMCR) Summit. Partners Melanie Ryan and Lee Harding discussed certification issues relating to the new FCA Directory.
Partner Chris Warren-Smith spoke with Marsh about current developments around the world in relation to individual liability for directors and officers. He discussed the impact of COVID-19 and the increasing focus of governments on creating legislation that carries greater penalties for noncompliance.
The UK Financial Conduct Authority (FCA) has recently announced that it is considering adding a sixth question on diversity and inclusion (D&I) to its five conduct questions (5CQs). The significance of D&I has long been discussed and highlighted by the regulator, but the announcement marks a further shift in the FCA’s level of focus on D&I and should be read alongside the collection of recent FCA speeches on the lack of gender and ethnic diversity at a senior level in financial services.
The Financial Conduct Authority (FCA) has emphasised in recent years that firms should consider nonfinancial misconduct when assessing the fitness and propriety of staff. On 29 March 2021, the FCA published a rare Decision Notice about the proposed ban of a regulated person for nonfinancial misconduct.
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.