The PRA has released a largely positive report, along with nine follow-up actions and recommendations on the SMCR for PRA-regulated firms.
The PRA reviewed the operation of the Senior Managers and Certification Regime (SMCR) against its original objectives and examined whether there have been any unintended consequences. The evaluation covered the period 2019-2020, included evidence from internal and external sources, and examined each component of the SMCR (including across the life cycle of firm and supervisory activity).
Whilst the evaluation did not look at FCA solo-regulated firms, the PRA did have discussions with the FCA on some issues and certain of the findings will also be of relevance to FCA solo-regulated firms, given the extension of the SMCR to them from the end of 2019.
To learn more about the key findings and themes identified, read the full Client Alert.