Consultation: Reforming the Senior Managers & Certification Regime
The government is consulting on reforms to the Senior Managers & Certification Regime, with the aim of streamlining the regime to support growth and competitiveness.
The Senior Managers & Certification Regime (SM&CR) was introduced in 2016 to increase individual accountability within the financial services sector, following the financial crisis. Today, the regime covers almost all firms regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).
In 2023, the previous government launched a Call for Evidence into the performance, effectiveness and scope of the regime. Responses detailed concerns about the compliance burdens and frictions the SM&CR can cause, especially when appointing new executives. The government is now consulting on legislative changes that aim to reduce regulatory burdens imposed by the SM&CR, without undermining its overall effect to maintain high standards in the financial services sector. It also provides a summary of the responses to the 2023 Call for Evidence.