Over the years, in the financial markets and in the business of financial institutions, lots of scandals, crises and liquidations have been experienced.
Rate-rigging by banks, rogue trading by market participants and mis-selling by financial intermediaries altogether form some notorious examples. The listing of debacles is non-exhaustive and ever growing. Obviously, undesirable behaviours must be halted.
The Senior Managers and Certification Regime (SM&CR) is setting minimum standards for individuals in firms and driving a culture of accountability for misconduct. The regime provides a robust framework for individuals and leaders to think about their actions. Obviously, in reality, in a professional environment, there is needed much more than just that.
The objective of the Senior Managers and Certification Regime (SM&CR) is to reduce harm to consumers and to strengthen market integrity. This is achieved by making individuals more accountable for their conduct and competence.
The SM&CR is made up of three components, namely direct accountability, fit and proper employees and conduct rules.