11 Feb 2019
Top executives at some banks have commended the newly implemented Senior Managers and Certification Regime (SM&CR), whose effectiveness was recently questioned over its handling of Barclays CEO Jes Staley.
In a statement discussing a video on its site, the Financial Conduct Authority’s (FCA) quoted a number of bank bosses praising its fairly new regime.
HSBC Deputy Group Chairman Jon Symonds describes the SM&CR as a ‘clear framework that is relatively simply defined on pretty much one page per person that really defines how the organisation knits together,’
Liz Nolan, Chief Executive Officer of EMEA, State Street, said the SM&CR has ‘helped us to drive better individual accountability through transparency, clarity and support’.
While J.P. Morgan EMEA CEO Vis Raghavan said: “The one key piece [of advice] which I would absolutely leave with somebody else who is adopting it is – this has got to be owned and led by the business, so you cannot delegate it to HR or compliance or any other kind of function.”
Last year the FCA was strongly criticised for fining Barclays chief Staley £640,000 for attempting to unmask the identity of a whistleblower, saying this was its first case under the SM&CR. Critics said it was ‘lenient’ on the CEO.
The SM&CR rules were formally implemented in 2016 as part of government efforts to make company bosses and senior officials directly liable for banking and compliance failures, following the role of banks in the financial crisis.
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