Commenting on the extension of the Senior Managers and Certification Regime (SMCR) to all ‘material risk takers’ in banks, Suvro Dutta, Banking Partner, KPMG UK, says:
“In the past few years we’ve seen a genuine shift in how banks approach culture, customer centricity and personal accountability. It’s at the heart of how decisions are made. The people at the top are paying much closer attention to what’s happening ‘under the bonnet’.
“It’s called the senior managers’ regime but SMCR goes well beyond that. It applies to anyone conducting activity that can cause significant harm to the bank or their customers, which in a big domestic retail bank would be thousands of people. Unlike the Approved Person Regime, banks hold responsibility for identifying who’s in or out and for certifying them to be fit and proper, not the regulator. Getting to this deadline has been a huge operational challenge for banks, but it puts the UK in pole position globally for driving personal accountability within banks.
“The UK is really leading the way on this but the principle of personal accountability is firmly on the radar of global regulators so I don’t think it will be long before we see SMCR or an equivalent regime being adopted elsewhere.”
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