On 7th March 2016 the new regulatory Senior Managers Regime came into force for the UK banking and insurance sectors.
This Blog is a guide to the banking regime (SMR). Many of the same rules are also included in the insurance version of the regime (SIMR) but we concern ourselves here mainly with the SMR.
The SMR replaces the old ‘Approved Persons Regime’ and is the tool now used by the UK regulators – the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) – to assess and approve whether people in key management positions in UK financial firms are ‘Fit and Proper’.
And it reaches far and wide, especially when it starts getting applied to other financial firms (as well as banks and insurance companies) in 2018.
But what does it all really mean and how will it help?