The following Financial Services guidance note provides comprehensive and up to date legal information covering:
As a result of failings in the financial services sector which contributed to the 2008 financial crisis, the UK Parliamentary Committee on Banking Standards (PCBS) was established in 2012 to consider professional standards in the UK banking sector. The PCBS recommended improving genuine accountability in firms. In response, the Senior Managers and Certification Regime (SM&CR) was created to increase individual accountability and raise standards of governance in order to help restore consumer confidence in the financial services sector and strengthen market integrity. The introduction of the SM&CR marked a fundamental shift in the PRA and FCA’s approach to regulating individuals.
The constituent parts of the SM&CR are:
Senior Managers Regime (SMR): Capturing, as a minimum, members of a firm’s board, the SMR requires the PRA or FCA to approve Senior Managers performing a Senior Management Function (as defined by the FCA or PRA), whether in the UK or overseas. Senior Managers have ultimate individual responsibility within the firm for a defined area of UK business
Certification Regime (CR): The Certification Regime applies to those employees who are not Senior Managers, but who could nonetheless pose, in the regulators’ view, a risk of ‘significant harm’ to the firm, its customers or market integrity. Firms themselves are required to certify, at the outset and on an annual basis, those members of staff who
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