SM&CR
Senior Managers and Certification Regime
Definition
The UK regulatory framework that aims to improve accountability in financial services by requiring firms to allocate specific responsibilities to senior managers, certify the fitness and propriety of certain staff, and apply conduct rules to all employees. Senior managers must have a Statement of Responsibilities defining their accountabilities.
Regulatory Context
Introduced by the FCA and PRA following the 2008 financial crisis and the LIBOR scandal, SM&CR replaced the Approved Persons Regime. It applies to banks, insurers, and solo-regulated firms. The regime includes a duty of responsibility for senior managers and a presumption of responsibility for banks.