Senior managers feel the heat as government changes accountability regime
New regulations on strengthening individual accountability in UK banking mean that banks will in future have to focus much more on the culture, governance structure, allocation of individual responsibilities and best practices.
To adjust fully to the new regime – effective from last month and imposed in the wake of the banking crisis of 2008 plus a host of subsequent scandals – will take further time and resources, executives say.
Organisations cite different challenges depending on their size and the nature of their operations. However, the shift will have to be as much about industry culture as compliance, according to Andrew Browne, chief executive of the British Bankers’ Association (BBA).
The regime covers three main areas: senior managers regime (SMR), certification regime (CR) and conduct rules, which will from March 2017 apply to all banking staff (except ancillary roles). Together these emphasise individual accountability in a way that was deemed to be lacking in the former approved persons regime.
Later on the whole system appears to be referred to as SMCR. If that’s its name,...