Humans + technology = SMCR compliance

At the core of the Senior Managers and Certification Regime is the desire to enhance human accountability and conduct. However, financial services firms are finding that RegTech (regulatory technology) and AI (artificial intelligence) can assist these objectives, boost compliance and support their business objectives. And the regulator’s expectations are adjusting accordingly, say industry experts.

Don Scott is technical director at compliance consultants TCC. Sister company Recordsure offers up to 100 per cent coverage of all customer interactions, using AI-enabled technology that records and triages communication from a variety of sources, from written documents to voice. These interactions are then presented in a digital environment for assessment, with interactions deemed a high priority getting flagged for review.

The rollout of the SMCR to solo-regulated firms is the latest manifestation of the Financial Conduct Authority’s ongoing focus on culture and accountability. The essence of the regime is to ensure that firms have suitable people in place, with the right skills and clear responsibility for named areas of the business. Not only should this improve consumer protection, but also help to drive positive cultural change across the industry and benefit the wider markets.