The UK Senior Managers and Certification Regime (SMCR) is being extended to almost all financial services firms authorised by the FCA. This will include many firms in the payment services, peer-to-peer lending, crowdfunding and robo-asset management sectors. The plans are currently under consultation and we expect the regime to be implemented towards the end of 2018.
The SMCR was introduced in response to the 2008 banking crisis and the LIBOR rigging scandal to enhance individual accountability and create a culture of risk management and compliance. It has applied to banks, building societies and certain investment firms since March 2016, with a modified regime for insurers (known as SIMR). It is anticipated the extended regime will largely follow the current SMCR.
This post considers the extension of the SMCR and suggests some next steps for newly ‘in scope’ firms. Continue reading