Accountability Regime Solutions for SM&CR

Redland has developed an award-winning set of Accountability solutions to fully support the specific requirements of the SM&CR Regime.

The need to Strengthen Individual Accountability is at the heart of the SM&CR regime, and the FCA and the PRA believe that holding individuals to account is a key component of effective regulation.

Our Accountability solution has been specifically designed  from the ‘ground up’ to meet the rigorous needs of the SMR, Certification and SIMR. The system has been proven in use since the advent of the regime and provides complete confidence that your regulatory obligations are met.

Under ‘Accountability 2’ there will be a widening of the regime across the breadth of the market. Firms impacted by the inbound regulation can be assured that through our ongoing technology investment, we will ensure that our Accountability solution keeps apace with future regulatory requirements.

Proven and trusted SM&CR ‘RegTech’

    Senior Managers Regime:

    • Management and production of MAPS (MRM)
    • Automatic compliance validation
    • Creation and maintenance of ‘SORS’
    • Committee management
    • Map drafting and audited approval processes
    • Automatic customised Map output
    • Recording of Reasonable Steps
    • Manage primary and 2nd tier reporting lines


    Conduct Regime:
    • Recording of role-specific training
    • Breach recording and management
    • Breach reporting to the Regulator


    Accountability Regime

    The new Senior Manager and Certification Regime or SM&CR regime has been created to enhance individual accountability within financial organisations and boost sector confidence. The regulations are being rolled out to all firms working within financial services and are focused on strengthening individual accountability. The FCA and PRA see holding individuals to account as essential in ensuring regulations are adhered to.

    Conduct Rules

    There are two tiers of Conduct Rules, with one set applying to all staff and the other only applying to Senior Managers. The size and nature of your firm will most likely have a substantial influence on how regulators will apply SM&CR. The FCA have been quick to emphasise that the new regime won’t automatically protect firms from fines despite the extra responsibility handed to individuals. Firms could still be fined heavily for failings, and the regime does not mean an end to action against firms.

    The Risks of Poor Attestation

    Companies that fail to implement reliable attestation processes are increasingly likely to fall foul of the law. Poor attestation processes can result in inaccurate financial reporting and poor compliance, with managers personally being held responsible for failure. The Individual Conduct Rules are being applied to all staff other than administrative employees. Financial institutions can reduce risk by streamlining their audit and compliance processes via strategic attestation management, delivering total visibility of their compliance processes and gaining a greater understanding of documents, applications, systems and how they work together.

    Certification Regime:

    • Fit and proper assessment (FIT)
    • Competency assessments
    • Business process ‘Life Cycle’ requirements
    • Online competency testing
    • Continuous Professional Development (CPD)
    • Management of Regulatory References
    • Identification of Certified Individuals
    • Fully compliant Certificate records and renewal tracking
    • Reporting and dashboard management of the Certification Regime
    • Automatic Certificate production and storage





    The Impact of The New Regulations

    Accountability 2 has seen the regime being widened across the entirety of the financial market. The new regulations have reshaped the way firms communicate with the regulator, how they instruct their staff and how they operate. Around 47,000 firms have been affected by the changes, though many won’t see the new regulations implemented until 2019. It is however essential that firms prepare for the changes at the earliest opportunity, consider how the regulations will affect them and their relationship with the regulator. This will ensure minimal business disruption and enable firms and individuals to avoid penalties.

    Improving The Culture of Business

    Regulation looks set to increase further over future years, which means a technology-led approach to compliance is essential. The regulator has placed an increased focus on culture recently, and the new regulations aim to transform the right intentions into the best and fairest outcomes for those that they serve. Financial institutions are being urged to familiarise themselves with the new Conduct Rules at the earliest opportunity, whilst updating their role profiles and responsibility matrix.

“Redland’s SM&CR Software is the clear market leader. It helps to protect firms, and their staff, against regulatory non-compliance, which might otherwise result in sanctions, fines and reputational damage”

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