SMCR

It is reasonable that senior management should take responsibility for decisions made in their areas of accountability. High-profile corporate failures, however, have prompted new senior management accountability regulations to be brought into force globally.

senior managers and certification regime (SMCR)

As Senior Management accountability regulations tighten, organisations can no longer view compliance as a ‘tick box’ exercise, and are finding ways in which they can encourage staff to take personal responsibility, improve conduct at all levels and ensure they clearly understand their legal obligations. Boardroom executives are now finding and introducing new tooling to empower greater ownership, promoting better understanding that ultimately drives efficiencies and cost savings.

KEY CONSIDERATIONS

Following the Financial Conduct Authority (FCA) announcing the extension of the Senior Managers and Certification Regime (SMCR), senior executives in over 47,000 financial services organisations are now personally exposed to reputational and financial penalties, should their conduct or competence fail to meet the standards set in the regime. The updated regulations explicitly state that these rules cannot be viewed as a ‘tick box’ exercise. The FCA expects all firms to consider how they apply the requirements to encourage staff to take personal responsibility for their actions, improve conduct at all levels, ensure staff clearly understand their responsibilities and record their key governance arrangements in a Management Responsibilities Map (MRM).

For the majority of firms, large amounts of important business data are created, maintained and presented in tools that are not fit for purpose. A lack of suitable tooling increases the use of Excel, Access databases, Visio diagrams and PowerPoint decks. All of these add to data duplication and proliferation, limit collaboration, lack control and ordered auditability. This complexity universally masks data gaps and errors. As a result, there is a high level of mistrust in the accuracy and reliability of the content which is also perceived as out-of-date.

BECOMING COMPLIANT

To become compliant firms must:

  • act with integrity
  • act with due skill, care and diligence
  • be open and cooperative with the FCA, the PRA and other regulators
  • pay due regard to the interests of customers and treat them fairly
  • observe proper standards of market conduct

SOLIDATUS FOR SMCR

The introduction of Solidatus, with only small process changes, can immediately improve regulatory reporting, quality, and control. The solution is to digitise the data held in the spreadsheets, PowerPoints, PDF, Visio diagrams and other forms of reporting documentation, and consolidate them into Solidatus models, thereby identifying gaps and eliminating duplication and redundancy. These are easily maintained and shared, while providing full version control and audit capabilities.

Other more complicated applications can continue to be the ‘golden’ source of information and be linked automatically to Solidatus. It provides the opportunity to connect siloed data sources and applications in a real-time way that ensures the participation of the relevant stakeholders.

Solidatus delivers not only a platform where inputs can be uploaded and maintained, but also a map of meaningful relationships enabling dynamic visual alerts, search capabilities and visibility. It can remove the reliance on outdated MS Office Suite applications for all business-important, non-application data.

Company-wide collaboration

Through its collaborative and crowdsourcing model, Solidatus allows for quick and effective enterprise wide identification of where boundaries of management responsibility lie. Working with all teams across the organisation, a clear understanding can be achieved of exactly where responsibilities are exercised and by whom.

Visualise and map Metadata

Data flow can be clearly mapped out to visualise each contact point and ownership can then be assigned. This can explain allocated responsibility for an FCA-prescribed senior management responsibility to more than one person jointly or divided responsibility for an FCA-prescribed senior management responsibility between different persons.

Proactive approach to compliance

Solidatus enables companies to prove to the regulator that they are taking a proactive approach to SMCR by clearly documenting and auditing their data landscape, and modelling the processes deployed to create their Management Responsibilities Map (MRM). Solidatus can quickly discover, document and share models, simplifying the process of being compliant.

DEMONSTRATE SMCR RISK

While implementing an MRM alone does not ensure compliance, Solidatus can demonstrate to the regulator how an MRM was constructed and prove how information is collected, stored, updated, deleted and who has responsibility for it. It also clearly shows that appropriate management responsibility is a key consideration for future change.
Solidatus for SMCR

ADDITIONAL KEY BENEFITS

  • Quickly assess compliance against requirements and standards
  • Capture the acceptance and understanding of responsibilities of the senior management functions
  • Maintain an always up-to-date Management Responsibilities Map
  • Instantly identify gaps or errors and efficiently maintain a full audit of changes
  • Rapidly build, maintain, and clearly articulate the impact of systems, processes and policies to all staff and promote personal responsibility for their actions
  • Share read-only views to engage staff, senior management, and regulators
  • Demonstrate improved oversight and control over how data is managed and reported
  • Remove the reliance on outdated MS Office Suite applications for all business-important, non-application data

Interested in learning more about how we can help?

An intuitive, simple to use web-based application that gives businesses the ability to rapidly map and visualise their data landscape.

Solidatus is a member of the EDM Council.
Solidatus is a member of the EDM Council

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