SMCR extends to cover financial market infrastructures

The Financial Stability Report of 2019 made a strong case for expanding the Senior Managers and Certification Regime to financial market infrastructures, so as to enhance the accountability of individuals and improve governance at these systemically important firms. Charlotte Hill and Jessica Howard report on the current consultation and what affected entities should be doing.

Charlotte Hillis a partner and head of the Financial Services Regulatory group at Taylor Wessing in London, where Jessica Howard is an associate. Contact them on c.hill@taylorwessing.com and j.howard@taylorwessing.com.

The Senior Managers and Certification Regime (SMCR) was introduced as a framework for responsibility within banks, and this has since been extended to insurers, firms solely regulated by the Financial Conduct Authority and benchmark administrators. The Government is now planning to extend the SMCR again, in relation to Financial Market Infrastructures (FMIs).