POLL: Will the SMR prevent misconduct?

Author: IFLR Correspondent | Published: 18 Feb 2016
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Post-financial crisis, one of the most common public reactions was anger that no individuals were held personally accountable for what was, in some cases, blatantly reckless risk-taking and outright misconduct.

Fining firms is no longer enough, so an incoming UK regulation aimed at strengthening personal accountability makes perfect sense.

Enter the Senior Managers Regime, under which bankers found responsible for failings at a financial institution as a result of reckless decision-making can, at the most extreme end of the spectrum, face up to seven years in jail on criminal charges.

The brainchild of the parliamentary commission on banking standards set up after the 2012 Libor-rigging scandal, the rules take effect on March 8. They will apply to anyone acting as chairman, senior independent director, or chair of risk, audit, remuneration and nomination committees, with the likelihood of further extension.

Against this backdrop, IFLR’s quick poll this month asks readers how effective the regulation will be at preventing the behaviour that caused the last crisis.

Cast your vote on the right-hand side of IFLR’s homepage. The results will be published in the next issue of our magazine.

If you would like to arrange an off-the-record chat to explain your view, email elizabeth.meager@legalmediagroup.com. All votes and comments are anonymous.

Results of past IFLR polls

Helping panda bonds grow
Fears over US auto securitisation
CMU’s greatest impact