SM&CR Implementation Tasks (Part 4) | SMCR Software | Worksmart

Julie Pardy

Julie Pardy

With more than 30 years service in the Financial Services industry Julie has spent many years at the coal face undertaking a wide variety of roles in banking from Compliance to Sales, Operations to Training.

What Can you and your firm do now?

This blog seeks to continue to help you plan your project for the implementation of the Senior Managers and Certification Regime.

Often, people say to us that they don’t feel that they need to take any action now as the regime doesn’t start for a while and then there is another year from the start date to complete lots of other tasks. However, if you ask the Banking community, what would they would do differently, if they had to do this again? They would say they would take action far earlier.

Now, it would have been difficult for the Banking Community to do this as they had some quite short timelines from when the regulatory change was announced to achieving the deadlines for commencement. That said, there are some things (as in the slide below) that you can do now that will most definitely make your life easier as you get closer to your first regulatory deadline. Our earlier blog concentrated on Governance Tasks. Here we will be discussing Employment Tasks.

Employment Tasks

You will, without doubt, have people who say that they no longer want to be a Senior Manager if they are going to have to hold Prescribed Responsibilities. You are likely to have Non-Executive Directors that might not want to hold a regulatory pre-approved role, but might want to become a “Notified NED”. You will definitely have people who do not want to be in Certification and it is really good to know, sooner rather than later, which people and job roles are affected so that you can have those conversations.

You will also want to consider your position as a company with regards to Certification. The law of averages says that some people will fail Certification, especially if you have significant numbers of staff. From a risk management perspective, it would be odd if you didn’t have any individuals that failed a certification check so it can be best to plan early on what your approach might be.

As an organisation, you need to understand, before you implement your internal certification Regime the risks, controls and measures you will need in order to run it effectively. If you have an individual who holds a certified function within your firm and, for whatever reason, you cannot certify them, how will you deal with that person? Does that mean you end their employment? Will you re-deploy to another role? Will you seek to re-train that individual for a certain number of weeks or months before attempting to re-certify?

Whatever you decide is whatever is right for your business. Making that decision sooner rather than later will make it easier for you once you’ve implemented the regime.


With regards to Non-Executive Directors (NED) we have had some feedback from the Banking world that said there were a number of NED who had decided to step down as a result of the regime being implemented within their organisations. The Regulator has made the distinction between certain non-execs that have to have regulatory approval and those that don’t. It is worth understanding what type of firm you are, what type of NED you will have and whether you will have sufficient to fulfil those roles going forward.

Supervisory Structure

Another great tip we had from the Banking world relates to your Supervisory Structure. Under the Certification Regime, one of the criteria for inclusion under the regime is if you are either a supervisor or a manager of somebody whose job role classification also falls under Certification. Many firms that run a split supervisory/line management structure decided that, actually, they would change their structures because a split supervisory structure increased the numbers of individuals that had to be classified within Certification. Consider what this might mean for your supervisory structure for those that are subject to the T&C rulebook in addition to the new Certification Regime requirement.

Grade Change Discussions

Our banking clients will tell us that this will happen! You will have discussions with people who think they deserve an upgrade as a result of these changes and you will have people that will want to be paid more. Knowing this will happen and planning for it might make things a bit easier in the longer term.

Look out for our next instalment, ‘SM&CR: Implementation tasks Part 5 – Process Management Tasks’ Coming soon!


 Download the Free Worksmart Information Sheet:

5 Great Strategies for Successfully Implementing SM&CR in your Organisation 


Latest Blogs