Is the Senior Managers and Certification Regime changing banking for good?

In 2016 the Senior Managers and Certification Regime (SMCR) came into being. It sought to improve banking culture through the attribution of responsibility to individuals and to provide clarity on required conduct standards. It marked a shift away from collective responsibility and towards more indi...

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Bibliographic Details
Published in:	Modern law review 2022-11, Vol.85 (6), p.1440-1462
Main Author:	Hickman, Eleanore
Format:	Article
Language:	eng
Subjects:	Accountability Attribution Banking Banks and banking Certification Collective responsibility Corporate governance Corporation law Corporations Culture Economic crisis Financial crises Senior managers Social responsibility of business
Online Access:	Request full text
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Summary:	In 2016 the Senior Managers and Certification Regime (SMCR) came into being. It sought to improve banking culture through the attribution of responsibility to individuals and to provide clarity on required conduct standards. It marked a shift away from collective responsibility and towards more individual accountability that had been so lacking following the financial crisis of 2007/08. Its scope is expansive, including not just board executives but also senior managers. In this paper, I question whether there are indications the SMCR is achieving its objective of 'changing banking for good'.I do this by analysing the design of the SMCR and its application in practice as well as the meaning and regulatability of culture. I conclude that though the SMCR could make strides towards better banking culture, its potential is being curtailed by inconsistent messaging and irresolute application.
ISSN:	0026-7961 1468-2230