Written by Sally Scutt on Friday February 26, 2016
Several months ago we carried an article in our magazine InCompliance about the new Senior Manager and Certification Regime. The most significant policy shift is the introduction of the Certification regime and the extension of the conduct rules rather than the abolition of the Approved Persons Regime. This is even more true now that the so-called "reverse burden of proof" has been removed from the legislation by the Bank of England and Financial Services Bill.
The Introduction of personal regulatory Conduct Rules for all staff who are not in a purely administrative function, is a significant change and it will be the first time that the majority of banks' employees have been subject to these rules. This means they could technically be disciplined for a breach by the bank. The regime requires the bank to certify an employee is fit and proper on an annual basis. This will be a huge administrative burden on banks and there will be serious consequences for anyone whose employer decides they are not satisfied the employee is fit and proper. The decision making in this area, especially where an investigation is underway will be a difficult process to manage.
For many firms there has been a considerable task involving HR, Compliance, Legal ,Risk and the Business to review policy and procedures and implement the new regime. The implementation date of 7 March is fast approaching.
In the below interview (click to view on YouTube) Sally Scutt, ICA Strategic Advisor, discusses the Senior Managers and Certification Regime (SMR) implementation with Daren Allen, Partner and Head of Corporate Crime and Investigations, and Polly James, Senior Associate from Berwin Leighton Paisner. In it we hope to assist and remind everyone of the priorities in the new regime. We highlight in particular the emerging issues for MLROs, especially those who do not sit on the firm's ExCo or Board.
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