Senior Managers and Certification Regime (SMCR) is a UK financial services regulatory framework introduced by the Financial Conduct Authority (FCA) in 2016. The SMCR was created to ensure that individuals in the financial services industry are held personally accountable for their actions and to increase the level of trust consumers have in the financial services industry.

The SMCR is designed to replace the Approved Persons Regime, which was introduced in 2000. The SMCR has three key components: the Senior Managers Regime, the Certification Regime, and the Conduct Rules. The Senior Managers Regime defines the roles and responsibilities of senior managers, who are responsible for the overall management of the firm. The Certification Regime is designed to ensure that individuals have the knowledge and competence required to do their jobs. Lastly, the Conduct Rules set out the standards of conduct that all individuals in the financial services industry must adhere to.

The SMCR has had a significant impact on the financial services industry, as it requires firms to adopt a more transparent and structured approach to managing individuals. Firms must now identify, assess and manage the risks posed by individuals and ensure that they have the appropriate knowledge and skills to do their jobs.

Firms are also required to take steps to ensure that employees are subject to appropriate supervision and monitoring. This includes developing and implementing policies and procedures which will help to ensure that employees are aware of their responsibilities, and that any potential breaches of the Conduct Rules are identified and dealt with quickly.

The SMCR has also introduced a number of certification requirements. Individuals must now be certified by a relevant body or the FCA in order to be authorised and/or approved to perform certain activities.

Overall, the SMCR has had a positive impact on the financial services industry. It has improved the accountability of individuals and has helped to increase the level of trust consumers have in the sector. The SMCR has also introduced a more robust system of oversight and supervision, which has helped to ensure that individuals have the appropriate knowledge and skills to do their jobs.