Complying with Senior Managers and Certification Regime (SMCR)
IThe Senior Managers and Certification Regime (SMCR) is a requirement of the United Kingdom’s Financial Conduct Authority (FCA), following the 2008 financial crisis. SMCR applies to banks, credit unions, investment firms, and other financial services firms in the U.K. The goal of the regime is to create high standards of conduct and hold executives accountable to them. Senior Managers at British financial institutions must be individually certified to perform their duties. As a result, senior managers are personally liable for their actions; additionally, information about individuals working in financial services is available to consumers.
SMCR requires that there be no gaps or overlaps in responsibilities between senior managers, or among non-senior employees who could potentially impact or harm the company or customers. Senior managers must take “reasonable steps” to control their areas of responsibility effectively while complying with requirements and standards. To enforce this, the Senior Managers and Certification Regime requires managers to identify and map responsibilities and roles, and provide ongoing documentation. SMCR will be enforced starting December 2020, after a year-long transition period.
See how to comply with SMCR