The Senior Managers and Certification Regime (SM&CR) apply to the United Kingdom banking sector since March 2016 and dual-regulated insurers since December 2018.
SM&CR has been put in place to reduce financial service consumer harm and strengthen market integrity by making individuals accountable for their conduct and competence.
The FCA describes SM&CR as an opportunity for financial institutes to establish healthy cultures and effective governance by encouraging individual accountability and setting standards for personal conduct.
The SM&CR legislation was formed in response to the 2008 banking crisis and significant conduct failings such as the manipulation of LIBOR.
Most staff engaged in financial services activities at SM&CR institutes are affected by the so-called conduct rules.