Funds face restructuring ahead of SMR

Author: Lizzie Meager | Published: 6 Dec 2016
Lobbyists will argue this is a bad time to make London less attractive
Asset managers in the UK are readying themselves for a new individual accountability regime previously only applicable to senior staff members at banks, and for some – particularly international-facing businesses – governance structures will have to be overhauled.

The Financial Conduct Authority (FCA) announced in late 2015 that the Senior Managers’ Regime (SMR), which has applied to banks and building societies since March, would be extended to all FSMA [Financial Services and Markets Act]-authorised people, including asset managers.

When completed, which isn’t likely until 2018 at least, it’s expected to catch approximately 60,000 businesses from stock brokers to consumer credit firms, and everything in between.

Responses have been mixed. “I hope this will land somewhere sensible. Asset managers are not banks, regulators know that, so I’m hoping for a proportionate regime,” said Lisa Cawley, financial regulation...


 

 

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