Senior Managers’ Regime teething problems revealed

Author: Tom Young | Published: 8 Mar 2017

The UK’s Senior Managers’ Regime is one year old this week but firms are still struggling with everything from regulatory references and handover certificates to meeting the latest certification deadline.

The regime, introduced by the Financial Conduct Authority (FCA) and Prudential Regulatory Authority (PRA) in March 2016 aims to improve individual and corporate responsibility and accountability. Although the bulk of the rules are now in place and settled, certain elements are still causing confusion.

The requirements for handover documents, which are intended to be drafted by outgoing senior managers (SMs) for the purposes of fully disclosing issues their successor will face, are unclear. The FCA initially mandated firms to introduce formal handover certificates in which SMs would be required to include all relevant information regarding issues...