SMCR sparks just one enforcement action in nearly five years

FOI reveals

Mike Sheen
SMCR has seen 34 investigations but only one fine since its inception

SMCR has seen 34 investigations but only one fine since its inception

The Senior Managers & Certification Regime (SMCR) has led to 34 investigations by the Financial Conduct Authority (FCA) and just one successful enforcement action since it came into force in 2016, suggesting the landmark regulation “might not have the right tools for the job”, new research suggests.

With many of the requirements applicable to dual-regulated asset and wealth management sector firms as of December 2019, SMCR introduces new administrative, regulatory and conduct rules that banks and other large financial institutions have been subject to since 2016. SMCR aims to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct, while encouraging a culture of personal responsibility throughout businesses. Business disruption caused by the coronavirus pandemic forced the FCA earlier this year to delay the introduction of...

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