The SMCR, five years on

Half a decade after its implementation, the type of enforcement case envisaged by those who crafted the current financial services accountability regime has yet to emerge. Though any perception of improved firm cultures is arguable, many senior managers have found their clearer areas of responsibility a sobering incentive to seek to ensure they aren’t on the hook for a regulatory breach. David Rundle appraises the SMCR’s performance.

David Rundle is counsel in WilmerHale’s UK White Collar Defence and Investigations group. David’s practice focuses on defending FCA enforcement investigations against firms and Senior Managers. Contact him on david.rundle@wilmerhale.com.

Five years ago, on 7 March 2016, the Senior Managers and Certification Regime came into force. At first it applied only to dual-regulated banks – those that are regulated both by the Financial Conduct Authority and Prudential Regulation Authority. The regime has since been extended to dual-regulated insurers and on 9 December 2019 it started applying to most solo-regulated firms.