The Senior Managers Regime

Stand out for the right reasons

What it really takes to sleep soundly at night

After years of planning and preparation, the Senior Managers Regime (SMR) has finally gone live in the banking and insurance industries and will soon be rolled out to the wider financial services sector.

The SMR seeks to boost personal accountability by putting the onus on you as an individual to demonstrate that you’re taking reasonable steps to do the right thing. The regime requires a high level of clarity and is already empowering individuals to challenge the status quo and debate issues that had previously remained untouched. Each senior manager needs to be confident with their personal narrative. The challenges come down to four very fundamental and personal questions:

  • What are your responsibilities?
  • How do you discharge them?
  • How can you be confident in your judgements?
  • How do you trust people to do the things that are done in your name and flow through to your area of responsibility?

What good looks like:

Drawing on our experience of working with a wide range of organisations, we believe that there are six key foundations senior managers need to consider in order to effectively discharge their responsibilities. You can explore these using the icons below and read a more detailed summary, including information on our "foundations for confidence" in our downloadable Point of View.

The Senior Managers Regime has ushered in an era of very personal accountability.

What can you do to ensure you’re taking the ‘reasonable steps’ needed to do the right thing and safeguard your career and professional reputation?

Embracing a new way of working - six key foundations for real confidence:

4. Reasonable steps and evidence

In our experience, evidential adequacy is proving a difficult challenge. In order to have confidence, you need to show how you came to a decision, when and where it was discussed and what the rationale for your judgement was.

5. Alignment

Regulators want the SMR to line up with business objectives and strategic execution – and a key test is whether ‘the words and music are aligned’.

6. Sustainability

SMR is the new reality. You need to ensure that new people coming into your organisation understand the implications and that any changes in operating model take account of SMR requirements.

Contact us

Sarah Isted
Partner, UK Financial Services Risk and Regulation leader, PwC United Kingdom
Tel: +44 (0)7834 251 939
Email

Chris Box
Financial services HR consulting leader, PwC United Kingdom
Tel: +44 (0)20 7804 4957
Email

David Kenmir
Partner, PwC United Kingdom
Tel: +44 (0)20 7804 4794
Email

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