We are launching a discussion to clarify how and why the legal function is currently captured under the Senior Managers and Certification Regime (SM&CR) and to consider whether it should continue to be part of the regime.
The new accountability regime for the banking sector, the SM&CR, came into force on 7 March 2016. The rules aim to enhance and embed a culture of individual responsibility and accountability within firms.
As part of our engagement with industry, firms have asked us how ‘Senior Management Function 18 – Other Overall Responsibilities’ (SMF18) applies to the legal function.
We consider this in this Discussion Paper and want to hear what you think.
This paper will primarily be of interest to UK banks, building societies, credit unions and PRA‑designated investment firms. It will also be of interest to incoming branches of overseas relevant firms as well as other groups – particularly legal professional bodies. It may also be of interest to other FSMA-authorised firms that the SM&CR will be extended to.
This paper will primarily be of interest to firms. Consumers may be interested in how the SM&CR operates within relevant firms to enhance individual accountability.
The consultation period has closed. We will analyse responses and provide feedback, being clear on what is required in this area. If we need to take forward any further policy proposals, we will issue a Consultation Paper in due course.