The Senior Managers Regime, or SMR (sometimes called the Senior Managers & Certification Regime) arrived in early March 2016 in the UK and is designed to promote better behaviour in the financial sector by executives whom are material risk takers. The regime is currently directed at UK banks, building societies, credit unions, and certain regulated firms but will be extended to all financial firms by mid 2018. At its heart, the SMR requires firms to identify key decision makers whom have overall responsibility for a specific risk-taking area. Statements of responsibilities and a related road map is to be prepared for each firm covered by the SMR. In my eyes (I too am covered by the new regime), it is designed to underscore the specific areas of responsibility and hold executives accountable, thus reinforcing ownership, accountability and ultimately firm wide conduct.
The IFR reported earlier this month (March 5th, 2016) that there are some 3,400 professionals are deemed to be material risk takers. Only two years ago, they report only 1,100 staff were classified as code staff, the then similar designation, demonstrating the widening net of this drive to increase risk-taking accountability. You can learn more about the SMR here http://www.moorestephens.co.uk/news-views/february-2016/senior-managers-regime-deadline-monday-7-march. The infogram above is complements of KPMG who publish further information on the SMR and its impact at: http://www.kpmgfundnews.eu/united-kingdom/2016/02/strengthening-accountability-in-banking/.
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