Rushed introduction of Senior Managers Regime for UK-based banks incurs growing alarm – 29th Dec 2014

The British government’s dash to get the new “Individual Accountability in Banking” framework up and running before the UK general election on May 7 next year risks creating a badly coordinated regulatory hodgepodge, bankers fear. The two regulators whose job it is to implement the regulatory requirements of the three elements of the framework; the new Senior Managers Regime (SMR), annual certification of non-senior bank staff, and stricter personal conduct rules, are believed to be privately sympathetic to industry concerns about the rushed timetable. “It’s important that the [government] and regulators listen to industry feedback that the original timetable was too short,” said Celyn Armstrong, a counsel in the financial regulation group at Linklaters. Senior executives who are “not substantively changing their role” will be eligible for grandfathering to the Senior Management Functions (SMFs) corresponding with their Controlled Functions (CFs) under the current Approved Persons

 

Peter Elstob, Compliance Complete