Senior Managers & Certification Regime
Good Practice Guide
03 October 2018
29 July 2019
Look at compliant methods that encourages brokers to look at managing responsibilities and their outcomes for customers.
The Senior Managers & Certification Regime (SM&CR) is a programme designed by the FCA to improve ‘trust in financial services’ by making the right people in financial services firms accountable for their decisions.
The programme originally came about in response to the 2008 financial crisis where it was felt that not enough action was taken against the banking sector. The SM&CR originally applied to banks and building societies in 2016 and is now being extended to include brokers, financial advisers, fund managers, insurers and reinsurers.
As Andrew Bailey, Chief Executive of the FCA, said:
“Trust in financial services will only be rebuilt when the public truly believe that senior managers in our financial institutions are taking responsibility for the actions they take.”
As a result, much of the SM&CR focuses on:
- Who the senior managers are in a firm;
- What they are taking responsibility for; and
- What happens if they fall short of their responsibilities.
The SM&CR is designed to place a greater importance on accountability by encouraging self-governance and ethical behaviour.
This Good Practice Guide looks at compliant methods that encourages brokers to look at managing responsibilities and their outcomes for customers.
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This document is believed to be accurate but is not intended as a basis of knowledge upon which advice can be given. Neither the author (personal or corporate), the CII group, local institute or Society, or any of the officers or employees of those organisations accept any responsibility for any loss occasioned to any person acting or refraining from action as a result of the data or opinions included in this material. Opinions expressed are those of the author or authors and not necessarily those of the CII group, local institutes, or Societies.