Weekend Essay: What do we even mean by culture ? moneymarketing.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneymarketing.co.uk Daily Mail and Mail on Sunday newspapers.
<p><span>The FCA has published a </span><a rel="noopener noreferrer" target=" blank" class="ext" href="https://www.bankofengland.co.uk/prudential-regulation/publication/2021/april/joint-pra-and-fca-statement-on-the-fsb-peer-review-on-remuneration">joint statement with the PRA<span class="ext"></span></a><span> welcoming the Financial Stability Board’s (FSB) Peer Review of the UK’s remuneration regime.</span></p>
Have the regulator’s SMCR rules changed anything?
Work on the assessment of implementation had been delayed but will be an area of focus for the FCA this year
By Jon Roberts 14
th April 2021 3:37 pm
Now that the final elements of the Senior Managers and Certification Regime have been implemented for FCA solo-regulated firms, it’s a good time to reflect on how it went and any lessons learned.
There is a view that SMCR has not really changed anything that it was merely a development of existing rules and guidance or the latest FCA passing fancy. Of course, the FCA holds the opposite view that it is a wide-ranging set of new requirements with the aim of marking a sea change in the way firms operate, improving their culture and personal accountability and, ultimately, outcomes for clients.
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The Prudential Regulation Authority (“PRA”), in December 2020, published a report following an evaluation of whether the Senior Managers and Certification Regime (“SMCR”) is meeting its original aims.
The report includes PRA observations on how firms have implemented the SMCR and, although the PRA does not suggest radical changes to the regime, here we set out practical considerations on some of the key points made.
Recruitment and diversity
PRA finds that senior management teams should have diverse skills and experience, not least because more diverse leadership teams support better decision making and prudential outcomes by challenging groupthink. When replacing SMFs, the standards for approval do not require or imply straightforward replication of personal characteristics.
The SMCR, Five Years On - Finance and Banking mondaq.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from mondaq.com Daily Mail and Mail on Sunday newspapers.