SM&CR

Implementation of SM&CR is fast approaching. There needs to be leadership and commitment at the highest level within firms to reasonably ensure compliance with the new regime. Nathan Matthews looks at the key role directors play in shaping a positive organisational culture.

In 2018, there was a reported 24% increase in the number of whistleblowing complaints to the FCA - an increase which follows the introduction of SM&CR within the financial sector.

SM&CR aims to make clear where responsibilities lie within an organisation. Nathan Matthews looks at how to delegate effectively, whilst retaining accountability.

It’s worth remembering that recruitment is not just about getting the best people for the job, it’s also about demonstrating that you’re an employer who people will want to work for. Lisa Powell explains why recruitment is as much a reflection on the employer as it is on the candidate.

The FCA has introduced CultureSprint events to consider ‘psychological safety’ in the financial services sector. With SM&CR on the horizon, organisational culture is increasingly in the spotlight. The first event discussed ways in which a healthy culture, where employees can speak up and be listened to, is created and maintained.

Under SM&CR, ‘regulatory references’ will be required for new appointments to Senior Manager positions and for new recruits who will hold a Certification Function – but what will these look like? Kate Foreman explains…

Can you honestly state that your firm has a purpose and a culture that sets an example within the financial services market? Under SM&CR, it will no longer be acceptable to sit back and say that you turned a blind eye to bad behaviour because of weak culture and governance.

The FCA has issued further consultation on SM&CR and is requesting comments on Consultation Paper 19/4: ‘Optimising the Senior Managers & Certification Regime and feedback to DP16/4 – Overall responsibility and the legal function’ by 23 April 2019.

Research suggests that three-quarters of the UK workforce are unclear on the skills their employer requires them to have. However, under SM&CR, firms must take responsibility for their staff being fit and proper and must know and be able to show who does what.

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