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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KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 13,500 partners and staff. The UK firm recorded a revenue of £2.07 billion in the year ended 30 September 2016. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
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