SMCR Review: Time for an Update?
We welcomed the recent announcement that there is to be a review of the SMCR regime in Q1 2023, as part of a wider review of regulation across the UK. Having been heavily involved in the SMCR landscape since its inception in 2015, ahead of launch in 2016, it is clear that a review is necessary. Although the key objectives of improving market culture and making individuals more accountable for their actions and responsibilities has been achieved, after seven years of operation lessons have been learned and improvements can be made.
As the UK economy evolves post Brexit it is clear that London as a financial centre needs to continue. Contributing over 10% of UK GDP, financial services are critical to the success of UK PLC. The SMCR regime is an important part of this but is in need of updating to continue to play a vital role.
Why does SMCR need review
In order to maintain the UK as a leading financial centre, it is vital that talent from across the globe is attracted to work in the UK. One of the barriers has been a reluctance of senior managers from overseas to want to take on the onerous responsibilities of SMCR. Indeed, many UK based managers since 2016 have taken the opportunity to step down and leave the industry. Therefore, now is a good time – 15 years after the financial crisis which prompted the setting up of SMCR – to carry out a root and branch review. Changes can then be made to maintain the effectiveness of the regulations, but also reflect that the market has changed sufficiently to allow some relaxation of the regulations.
Background
PeopleClear has developed and implemented a simple, effective and safe technology solution for firms to manage SMCR in the UK. Our product and expertise have been designed to simplify SMCR rather than over complicate, and to offer a best practice solution to all regulated firms. Additionally, PeopleClear was awarded an Innovate UK Smart Grant in August 2022 to develop the system further to include a pioneering Insights Engine which will analyse relevant regulatory data to produce useful management information.
How can PeopleClear add value
As a firm in the RegTech space, PeopleClear has leadership with experience dating back to Big Bang in 1986 in financial markets. The combination of regulatory, human resources and technology expertise brings a unique perspective. We have a combination of skills that brings relevant and pragmatic insights for SMCR going forward.
We are at the forefront of enablement governance – clear and robust frameworks that facilitate swift, defensible, and risk-based decision making. In doing so organisations gain competitive advantage through quick and decisive decision making whilst investors, customers, and regulators maintain confidence through clear, simple, and transparent frameworks. The SMCR review provides a once in a generation opportunity to leverage the UK’s competitive advantage through this simplification.
In preparation for the review, we can run a full diagnostic of your SMCR processes, helping you to stay ahead of any changes. To book a diagnostic review or for a full demo of our system get in touch now.