{"id":93485,"date":"2023-02-17T12:46:38","date_gmt":"2023-02-17T10:46:38","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=93485"},"modified":"2023-09-15T15:19:53","modified_gmt":"2023-09-15T13:19:53","slug":"smcr-ultimate-guide","status":"publish","type":"post","link":"https:\/\/factorialhr.co.uk\/blog\/smcr-ultimate-guide\/","title":{"rendered":"SMCR: The Ultimate Guide"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Enforced by <strong>The<\/strong> <strong>Financial Conduct Authority<\/strong> (FCA) in the United Kingdom, the <strong>Senior Managers and Certification Regime<\/strong> (SMCR) is a regulation related to governance. It was created as a means to <strong>lessen consumer harm<\/strong> and <strong>promote market integrity<\/strong> by developing a system that allows institutions and regulators to hold individuals accountable in the finance industry. As of 2023, the SMCR (or SM&amp;CR) affects:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Banks (applicable since 2016)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Dual-regulated insurers regulated by the FCA and the PRA<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Solo-regulated firms (applicable since 2019)<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Essentially, the SMCR is here to ensure that those in senior positions within the finance industry aren\u2019t<strong> abusing their power<\/strong>. In this article, we&#8217;ll cover:\u00a0<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><strong><a href=\"#functinos\">SMCR Functions<\/a><\/strong><\/li>\n<li style=\"text-align: left;\" aria-level=\"1\"><b><a href=\"#smcr\">SMCR Conduct Rules<\/a>\u00a0<\/b><\/li>\n<li style=\"text-align: left;\" aria-level=\"1\"><a href=\"#application\"><b>Application of the Conduct Rules<\/b><\/a><\/li>\n<li style=\"text-align: left;\" aria-level=\"1\"><a href=\"#whyissmcrcritical\"><b>Why is SMCR Critical for Senior Managers?<\/b><\/a><\/li>\n<li style=\"text-align: left;\" aria-level=\"1\"><a href=\"#importanceofemploymentscreening\"><b>Why is Employment Screening Important Under SMCR?<\/b><\/a><\/li>\n<li style=\"text-align: left;\" aria-level=\"1\"><a href=\"#tips\"><b>Tips for Screening Under SMCR<\/b><\/a><\/li>\n<li style=\"text-align: left;\" aria-level=\"1\"><b>\u2705<\/b><a href=\"https:\/\/factorialhr.co.uk\/get-started\"><b>Try Factorial Free for 14 Days<\/b><\/a><b>\u00a0<\/b><\/li>\n<\/ul>\n<h2><strong>SMCR Functions<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The SMCR has replaced the <\/span><a href=\"https:\/\/www.fca.org.uk\/firms\/approved-persons\"><span style=\"font-weight: 400;\">Approved Persons Regime (APR)<\/span><\/a><span style=\"font-weight: 400;\"> since 2019 and establishes two new kinds of restricted functions: &#8216;Senior Management Functions&#8217; (SMFs) and &#8216;Certification Functions&#8217;.<\/span><\/p>\n<h3><strong>Senior Management Functions<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Those in the coveted &#8220;Senior Manager&#8221; (SMF) role wield a tremendous amount of power and influence. This makes them highly accountable for ensuring the <strong>integrity of the market<\/strong> and <strong>preventing harm<\/strong>. But before they can step into their role, the FCA must give their stamp of approval. The FCA determines the necessary SMFs for a firm based on the firm&#8217;s classification, whether it&#8217;s a Limited Scope, Core or even Enhanced company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Each Senior Manager has a &#8220;Statement of Responsibility&#8221; outlining precisely what they are accountable for. This must be submitted to the FCA during the approval process. Senior Managers have a &#8220;Duty of Responsibility&#8221; under the <\/span><span style=\"font-weight: 400;\">Financial Services and Markets Act (<\/span><span style=\"font-weight: 400;\">FSMA) to ensure the integrity of the market. It\u2019s important to note that the head of the legal function<strong> isn&#8217;t considered an SMF<\/strong>. As lawyers are bound by legal restrictions, it\u2019s a bit challenging to apply the Senior Managers Regime to their role. Instead, they&#8217;ll fall under the <\/span><b>Certification Function<\/b><span style=\"font-weight: 400;\"> and <\/span><b>Conduct Rules<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><strong>Certification Functions<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Any employee who is not a senior manager but has the potential to cause significant harm to the company or its customers hold a &#8220;Certification Function&#8221;. Unlike senior managers, individuals holding a Certification Function <strong>do not require prior approval<\/strong> from the FCA. Instead, the financial firm itself is responsible for ensuring those under the Certification Function are fit for their roles. Examples of certification functions include those who liaise with clients and are material risk-takers. Others include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CASS oversight<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Proprietary traders<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Significant management<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Functions that require qualifications<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Managers of certification employees<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Algorithmic traders<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Certification Regime is applicable to employees who spend <strong>more than 30 days a year<\/strong> in the UK or are based in the country. This regime is also applied to employees who liaise with clients and those who are material risk-takers, regardless if they\u2019re overseas.<\/span><span style=\"font-weight: 400;\"> Accordingly, institutions are mandated to re-certify individuals under the Certification Regime on an annual basis.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.co.uk\/templates\/employment-contract\"><img decoding=\"async\" class=\"aligncenter wp-image-93499\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124301\/ENG_Blog_banner_Employment-Contract-Template_11zon.jpg\" alt=\"employment-contract-template\" width=\"830\" height=\"284\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124301\/ENG_Blog_banner_Employment-Contract-Template_11zon.jpg 900w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124301\/ENG_Blog_banner_Employment-Contract-Template_11zon-300x103.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124301\/ENG_Blog_banner_Employment-Contract-Template_11zon-768x263.jpg 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/p>\n<h2><b><a id=\"smcr\"><\/a>SMCR Conduct Rules\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">SMCR also requires that a code of conduct formally known as the <\/span><b>\u201cConduct Rules\u201d <\/b><span style=\"font-weight: 400;\">be prepared for <strong>almost all financial service professionals<\/strong> annually. The SMCR Conduct Rules are a collection of high-level codes that apply to almost all financial industry professionals. Meant to<strong> encourage compliance<\/strong> within SM&amp;CR-affected enterprises, the FCA Handbook has an entire section dedicated to the Conduct Rules that offers all of the necessary information.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In short, there are two sets of Conduct Rules. The first set applies to all staff (including Senior Managers). The second set only applies to Senior Managers.<\/span><\/p>\n<h3><strong>Known as first-tier or individual Conduct Rules, the following are applicable to <i>all <\/i>staff:<\/strong><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You must act with integrity;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You must act with due skill, care and diligence;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You must be open and cooperative with the FCA, the PRA and other regulators;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You must pay due regard to the interests of customers and treat them fairly;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You must observe proper standards of market conduct.<\/span><\/li>\n<\/ol>\n<h3><strong>Second-tier Conduct Rules &#8211; AKA Conduct Rules applicable to (only) Senior Managers:<\/strong><\/h3>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SC1: You must take reasonable steps to ensure that the business of the firm for which you are responsible is <strong>controlled effectively<\/strong>;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SC2: You must take reasonable steps to ensure that the business of the firm for which you are responsible <strong>complies with the relevant requirements and standards<\/strong> of the regulatory system;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SC3: You must take reasonable steps to ensure that any delegation of your responsibilities is to an appropriate person and that you <strong>oversee the discharge of the delegated responsibility effectively<\/strong>*;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">SC4: You must <strong>disclose appropriately any information<\/strong> of which the FCA or PRA would reasonably expect notice**.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">*Inapplicable for non-approved Non-Executive Directors (NEDs)\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">**Applicable for non-approved NEDs in limited-scope firms<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-93494\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17123553\/IM2_11zon.jpg\" alt=\"smcr\" width=\"732\" height=\"432\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17123553\/IM2_11zon.jpg 732w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17123553\/IM2_11zon-300x177.jpg 300w\" sizes=\"(max-width: 732px) 100vw, 732px\" \/><\/p>\n<h2><b><a id=\"application\"><\/a>Application of the Conduct Rules<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Conduct Rules are in place to keep financial service providers and their employees in check. If you&#8217;re working for a company regulated by the Financial Conduct Authority (FCA), these rules apply to the financial activities of the company and any activities that could potentially harm the UK&#8217;s financial system or the company&#8217;s ability to meet regulatory requirements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nonetheless, the Conduct Rules don&#8217;t apply to everyone in the financial services industry. If you&#8217;re classified as a sole trader who\u2019s not a senior manager or an <\/span><span style=\"font-weight: 400;\">&#8220;<\/span><a href=\"https:\/\/www.fca.org.uk\/publication\/policy\/guide-for-fca-solo-regulated-firms.pdf\"><span style=\"font-weight: 400;\">ancillary staff<\/span><\/a><span style=\"font-weight: 400;\">&#8220;<\/span><span style=\"font-weight: 400;\"> &#8211; a broad term with an extensive list that includes drivers, IT personnel, receptionists and more, you&#8217;re in the clear. However, if you&#8217;re an <\/span><i><span style=\"font-weight: 400;\">employee<\/span><\/i><span style=\"font-weight: 400;\"> of a sole trader, the rules still apply to you. Appointed representatives also fall outside the scope of the Conduct Rules.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For individuals within the company, the Conduct Rules apply to senior managers, individuals acting as senior managers in emergency situations, non-executive directors who aren&#8217;t senior managers, certification employees, those in temporary UK roles and all other employees (except for &#8220;ancillary staff&#8221;).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, for everyone else, the Conduct Rules only apply if you&#8217;re working in the UK or if you&#8217;re dealing with UK clients from an overseas branch of a UK firm. The FCA has an extensive interpretation of &#8220;dealing with&#8221; clients, which includes having contact with them, so it&#8217;s <strong>not just limited to financial dealings<\/strong>.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.co.uk\/templates\/expense-log\"><img decoding=\"async\" class=\"aligncenter wp-image-93500\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124447\/ENG_Blog_banner_Expense-Log_11zon.jpg\" alt=\"expense-log\" width=\"857\" height=\"294\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124447\/ENG_Blog_banner_Expense-Log_11zon.jpg 1000w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124447\/ENG_Blog_banner_Expense-Log_11zon-300x103.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124447\/ENG_Blog_banner_Expense-Log_11zon-768x263.jpg 768w\" sizes=\"(max-width: 857px) 100vw, 857px\" \/><\/a><\/p>\n<h2><b><a id=\"whyissmcrcritical\"><\/a>Why is SMCR Critical For Senior Managers?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A recent<\/span> <a href=\"https:\/\/researchbriefings.files.parliament.uk\/documents\/SN06193\/SN06193.pdf\"><span style=\"font-weight: 400;\">study<\/span><\/a><span style=\"font-weight: 400;\"> revealed the financial services industry represents <strong>8.3%<\/strong> of the country\u2019s overall revenue &#8211; that\u2019s worth over \u00a3170 billion. Needless to say, it\u2019s an expensive sector that needs a high-level standard of governance. The SMCR regime is a key point that all financial institutions should have under wraps to determine who is responsible for a firm&#8217;s actions and decisions when things go wrong. Adhering to SMCR standards won\u2019t only give organisations a <strong>boost in public trust<\/strong>, but it can also <strong>prevent unethical behaviour<\/strong> and <strong>reduce the risk of financial crime<\/strong> all the while protecting consumers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But how does the SMCR impact the senior managers involved?<\/span><\/p>\n<h3><strong>Continuous Improvement<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Particularly advantageous for those who aspire to advance in their careers or are involved in<\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/succession-planning\/\"><span style=\"font-weight: 400;\"> succession planning<\/span><\/a><span style=\"font-weight: 400;\"> in the finance industry, SMCR inspires professionals to <strong>keep refining their knowledge and abilities,<\/strong> ensuring that they <strong>maintain their expertise<\/strong> and <strong>stay ahead of the game<\/strong>.\u00a0<\/span><\/p>\n<h3><strong>Boosted Credibility<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">By complying with SMCR, you&#8217;re demonstrating that you take your duties seriously and are committed to maintaining the highest standards of conduct. This can <strong>enhance your reputation<\/strong> both within your organisation and in the wider industry, making you a <strong>more desirable candidate<\/strong> for advancements and opportunities.<\/span><\/p>\n<h3><strong>Clear Understanding of Rules and Regulations<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">SMCR requires individuals to have a thorough understanding of their responsibilities and the regulations that apply to their role. This not only helps <strong>reduce the risk of regulatory violations<\/strong> but also gives individuals a<strong> deeper appreciation of the larger regulatory landscape,<\/strong> which can be helpful in future career journeys.<\/span><\/p>\n<h3><strong>Reinforced Risk Management\u00a0<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">SMCR places a strong emphasis on risk management, which is vital for individuals working in the financial services sector. By following the regime, you can feel confident that you&#8217;re taking all necessary measures to <strong>minimise the risks associated with your role<\/strong>, which can<strong> help safeguard your reputation<\/strong> and that of your organisation.<\/span><\/p>\n<h3><strong>Higher Responsibility<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">SMCR makes individuals accountable for their actions and decisions, which can<strong> foster trust with stakeholders<\/strong>. By taking ownership of your role and showing that you&#8217;re committed to doing what&#8217;s right, you can <strong>improve your reputation<\/strong> and<strong> increase your credibility<\/strong>.<\/span><\/p>\n<h2><b><a id=\"importanceofemploymentscreening\"><\/a>Why is Employment Screening Important Under SMCR?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Employment screening is important under the Senior Managers and Certification Regime (SMCR) for a number of reasons. A proper employment screening process will not only save time but also <strong>reduce the chances of having to be involved in legal or <\/strong><\/span><strong><a href=\"https:\/\/factorialhr.co.uk\/blog\/insubordination-disciplinary-procedure\/\">disciplinary<\/a><\/strong><span style=\"font-weight: 400;\"><strong> procedures<\/strong> at the workplace. Here are several reasons why employment screening is crucial:<\/span><\/p>\n<h3><strong>Maintaining high standards of conduct<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">SMCR is designed to improve standards of conduct and accountability within the financial services industry. Employment screening helps to ensure that individuals who are hired into senior positions have a clean track record and are of the<strong> highest integrity<\/strong>, thereby contributing to the overall aim of improving standards.<\/span><\/p>\n<h3><strong>Minimising risk<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Financial institutions are faced with many risks, including reputational risks, operational risks and legal risks. Employment screening can help to minimise these risks by ensuring that individuals who are hired are<strong> fit and proper to perform their roles.<\/strong><\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-93498\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124048\/pexels-rodnae-productions-7414021_11zon-1024x683.jpg\" alt=\"smcr\" width=\"803\" height=\"535\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124048\/pexels-rodnae-productions-7414021_11zon-1024x683.jpg 1024w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124048\/pexels-rodnae-productions-7414021_11zon-300x200.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124048\/pexels-rodnae-productions-7414021_11zon-768x512.jpg 768w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124048\/pexels-rodnae-productions-7414021_11zon-1536x1024.jpg 1536w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124048\/pexels-rodnae-productions-7414021_11zon.jpg 1668w\" sizes=\"(max-width: 803px) 100vw, 803px\" \/><\/p>\n<h3><strong>Protecting stakeholders<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">SMCR is designed to protect stakeholders, including customers, shareholders and the wider public. Employment screening is an important part of ensuring that individuals who are appointed to senior positions are<strong> of good character<\/strong> and do not pose a risk to stakeholders.<\/span><\/p>\n<h3><strong>Compliance with regulatory requirements<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">SMCR requires financial institutions to have in place effective systems and controls to ensure that they comply with regulatory requirements. Employment screening is one of the key controls that can help to <strong>ensure compliance<\/strong> with the regime.<\/span><\/p>\n<h3><strong>Ensuring that individuals are competent<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Arguably one of the most crucial points, <strong>SMCR<\/strong> requires individuals to have the knowledge, skills and experience to perform their roles. Employment screening can help to ensure that individuals who are hired have the<strong> necessary competencies to perform their roles effectively.<\/strong><\/span><\/p>\n<h2><b><a id=\"tips\"><\/a>Tips for Screening Under SMCR<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Usually a task for the recruitment team or <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/recruitment-managers-101\/\"><span style=\"font-weight: 400;\">recruitment manager<\/span><\/a><span style=\"font-weight: 400;\">, an effective screening under the Senior Managers and Certification Regime (SMCR) can be quite tedious. Here are some tips to help you get started:<\/span><\/p>\n<h3><span style=\"font-weight: 400;\"><strong>Have a clear policy<\/strong>\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To ensure that your employment screening processes are consistent and effective, it is important to have a <strong>clear policy<\/strong> in place. This should outline the types of checks that are required for each role, the criteria used to assess individuals, and the procedure for conducting the checks.<\/span><\/p>\n<h3><strong>Check relevant databases<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Conduct checks on relevant databases, such as the <\/span><a href=\"https:\/\/register.fca.org.uk\/s\/\"><span style=\"font-weight: 400;\">Financial Conduct Authority (FCA) register<\/span><\/a><span style=\"font-weight: 400;\">,<\/span><span style=\"font-weight: 400;\"> to ensure that individuals have not been banned or restricted from working in the financial services industry. This is also crucial to verify the<strong> qualifications and experience of individuals<\/strong> and ensure that they have the necessary knowledge and skills to perform their roles effectively.<\/span><\/p>\n<h3><strong>Conduct a background check<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">A <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/employee-background-checks\/\"><span style=\"font-weight: 400;\">background check<\/span><\/a><span style=\"font-weight: 400;\"> is a crucial step to take before any hiring is considered. From referral checks to conducting criminal record checks, nothing is too extensive for senior positions, particularly those that involve access to sensitive information or significant amounts of money. In fact, criminal record checks are<\/span><i><span style=\"font-weight: 400;\"> compulsory<\/span><\/i><span style=\"font-weight: 400;\"> for SMFs.\u00a0<\/span><\/p>\n<h3><strong>Be thorough, don\u2019t rush<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">Cutting corners not only puts you at the risk of hiring unsuitable individuals &#8211; but it can also jeopardise your institution of non-compliance with SMCR. A proper <\/span><a href=\"https:\/\/factorialhr.co.uk\/blog\/recruitment-selection-hiring-process\/\"><span style=\"font-weight: 400;\">selection<\/span><\/a><span style=\"font-weight: 400;\"> or screening process can be an ordeal with so many regulations to consider. However, rushing the process can make it even <\/span><i><span style=\"font-weight: 400;\">worse. <\/span><\/i><span style=\"font-weight: 400;\"><strong>Take your time<\/strong> to get to know the people you\u2019re screening.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In sum, the finance industry is full of risks and is a critical sector for any country. On a path towards better governance and public trust, the SMCR represents the UK\u2019s commitment to ensuring the <strong>stability<\/strong> and <strong>integrity<\/strong> of the financial services industry. Now that you know what SMCR is, how to comply with the regime and the importance of employment screening that comes along with it, make sure you\u2019re up to date with changes to the SMCR and related regulations.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.co.uk\/get-started\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-93502\" src=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124553\/Get-started_11zon-9.jpg\" alt=\"free-trial\" width=\"900\" height=\"308\" srcset=\"https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124553\/Get-started_11zon-9.jpg 900w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124553\/Get-started_11zon-9-300x103.jpg 300w, https:\/\/factorialhr.co.uk\/wp-content\/uploads\/2023\/02\/17124553\/Get-started_11zon-9-768x263.jpg 768w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Enforced by The Financial Conduct Authority (FCA) in the United Kingdom, the Senior Managers and Certification Regime (SMCR) is a regulation related to governance. It was created as a means to lessen consumer harm and promote market integrity by developing a system that allows institutions and regulators to hold individuals accountable in the finance industry.<a href=\"https:\/\/factorialhr.co.uk\/blog\/smcr-ultimate-guide\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":174,"featured_media":93496,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[338],"tags":[],"class_list":["post-93485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-finance"],"acf":{"topics":"hr-software"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SMCR: The Ultimate Guide | Factorial<\/title>\n<meta name=\"description\" content=\"Understand what SMCR is and why it\u2019s critical within the finance industry. Learn the conduct rules and discover tips for SMCR employment screening.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/factorialhr.co.uk\/blog\/smcr-ultimate-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SMCR: The Ultimate Guide\" \/>\n<meta property=\"og:description\" content=\"Understand what SMCR is and why it\u2019s critical within the finance industry. 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