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...