Senior Managers & Certification Regime Oversight Solution

Senior Managers & Certification Regime Oversight Solution


According to CityWire, Sept 2017, regulator's records have shown that Financial Conduct Authority (FCA) investigations into approved individuals soared 149% from 61 to 152 following the launch of the senior managers regime (SMR) last year. The SMR is now being replaced by the Senior Managers & Certification Regime (SM&CR) which builds on the Approved Persons Regime.

The new regime marks a significant step up in individual accountability and the potential long-term repercussions for those accountable under SM&CR from behaviour (conduct) to decision making that does not meet the regulator’s standards. This affects the senior management of banks, building societies, credit unions and dual-regulated (FCA and PRA regulated) investment firms as well as those employees who aren’t senior managers but whose role means it's possible for them to cause significant harm to the firm or customers. As of December 2018 insurance firms will also need to adhere to these PRA and FCA guidelines.

Having good Governance and Oversight is the cornerstone of Governor Software. Richard Pike, the founder and CEO of Governor Software also sits as an independent non-executive director at three financial institutions and it is this experience that has provided Richard the very real insight into the phenomenal amount of material that non-exec directors must read, digest and make decisions on for which they can be held accountable.

It was this first-hand experience that led Richard to set-up Governor Software. 

Richard recently spoke with Peter Walker, Editor at FSTech about the impact of SM&CR and the role that FinTech will play providing Bankers the tools required to navigate this regulation. Click on the link to read the article entitled "New Regulation could cause banking brain drain"

Suzi Mutch