Premium
Is the Senior Managers and Certification Regime Changing Banking for Good?
Author(s) -
Hickman Eleanore
Publication year - 2022
Publication title -
the modern law review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.37
H-Index - 22
eISSN - 1468-2230
pISSN - 0026-7961
DOI - 10.1111/1468-2230.12752
Subject(s) - clarity , certification , expansive , scope (computer science) , accountability , attribution , business , accounting , public relations , management , political science , psychology , chemistry , computer science , law , social psychology , economics , biochemistry , compressive strength , materials science , composite material , programming language
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.