Asset managers prepare for SMCR challenge as FCA begins to 'bare its teeth'

New rules to kick in at the end of 2019

Senior staff within asset and wealth managers will soon face potentially unlimited fines if they fail to meet conduct standards under incoming new rules, which have already enabled the Financial Conduct Authority (FCA) to "bare its teeth" in efforts to transform the culture of the markets it regulates.

The Senior Managers & Certification Regime (SMCR) will apply to the asset management sector from 9 December 2019, placing upon them new administrative, regulatory and conduct requirements that banks and other large financial institutions have been subject to since 2016. FCA clamps down on sexual misconduct ahead of SMCR extension SMCR aims to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct, while encouraging a culture of personal responsibility throughout businesses. Under SMCR, employees are either deemed 'senior ma...