Senior Managers & Certification Regime (SM&CR) - A Good Practice Guide for Mortgage Professionals

The Senior Managers & Certification Regime (SM&CR) is a programme designed by the FCA to improve ‘trust in financial services’ by making the right people in financial services firms accountable for their decisions.

The programme originally came about in response to the 2008 financial crisis where it was felt that not enough action was taken against the banking sector. The SM&CR originally applied to banks and building societies in 2016 and is now being extended to include brokers, financial advisers, fund managers, insurers and reinsurers.

As Andrew Bailey, Chief Executive of the FCA, said:

“Trust in financial services will only be rebuilt when the public truly believe that senior managers in our financial institutions are taking responsibility for the actions they take.”

As a result, much of the SM&CR focuses on:

• Who the senior managers are in a firm;
• What they are taking responsibility for; and
• What happens if they fall short of their responsibilities.

The SM&CR is designed to place a greater importance on accountability by encouraging self-governance and ethical behaviour. This Good Practice Guide, written in association with Paradigm Mortgage Services, examines the following:

• What the SM&CR is

• How to identify Senior Managers within the firm

• Different types of firm

• How to take responsibility

• What the Conduct Rules are

• How to be accountable

Read the Good Practice Guide HERE