UK HM Treasury publishes consultation response on Senior Managers and Certification Regime reforms as FCA and PRA update rules

HM Treasury published its response to the consultation on reforms to the Senior Managers and Certification Regime (SM&CR), introducing changes described as a major upgrade to the UK’s framework for individual accountability in financial services. The release also covered a ministerial meeting with the CEOs of Barclays UK, Lloyds Banking Group, Santander UK, NatWest Group, Nationwide Building Society and HSBC UK amid heightened global uncertainty. The Financial Conduct Authority and the Prudential Regulation Authority issued policy statements amending their SM&CR rules and guidance to align with the Treasury changes, with the government and regulators aiming to cut regulatory burdens by half and simplify firms’ navigation of the regime. Ministers also highlighted progress on the Financial Services Growth and Competitiveness Strategy, including the launch of Targeted Support to boost retail investment, work commissioned from the Financial Services Skills Commission on disruptive technologies and skills needs and a planned financial services Skills Compact, and pensions reform through the Pensions Bill. Separately, the Economic Secretary announced the appointment of Chris Woolard CBE as Wholesale Digital Markets Champion to drive tokenisation in financial markets and a package of measures to modernise payments services regulation.