On the 7th March 2016 the new Individual Accountability Regime (IAR) for banks, building societies, PRA designated investment firms and credit unions came into force.
The Individual Accountability Regime consists of 3 main areas:
- The Senior Managers Regime (SMR), which focuses on individuals who hold key roles or have overall responsibility for whole areas of relevant firms.
- The Certification Regime (CR), which applies to all staff who are in key roles and are in a position to inflict significant harm on the firm or its customers
- The Conduct Rules which will apply to all staff engaged in regulated activity.
With the onus of proving and demonstrating compliance firmly on companies and senior managers, firms must ensure that they are able to evidence and document the processes and procedures they are deploying to deliver good conduct and minimise breaches.
If your firm has to adhere to the new regime, you must have the right solutions and processes in place to ensure accountability, certification and conduct are tracked and managed appropriately and all information relating to IAR is easily evidenced.
AITrackRecord can help your firm address the regulatory aspects of the Senior Managers Regime (SMR), Senior Insurance Managers Regime (SIMR), Certification Regime (CR) and Conduct Rules to make it easier to successfully manage and keep track of all aspects of IAR including:
- Awareness of the implications for your firm and the outcomes you need to achieve
- Building on the lessons learned and challenges from implementation without systems
- Fit and Proper assessments
- Regulatory pre-approvals
- Senior Management Functions (SMF and SIMF) allocation
- Statements of Responsibilities
- Responsibilities and Governance Maps
- Certification and recertification
- Hand overs
- Conduct Rules training and adherence
- Compliance Breach Management
- Key Performance Indicators (KPI) tracking
- Record Keeping
Regulatory References will have an impact on accountability regimes in all firms, we will be able to provide more clarity on what these are and the solutions to the problem after the Regulator has completed consultation later in 2016 and published its final rules.
We will enable you to easily provide or point towards the answers to the fundamental questions that will be asked by your firm and by the FCA and PRA about the conduct of your senior managers and employees.
Our expertise will empower you to manage the following aspects of IAR:
Senior Managers Regime
- Assign and track Senior Management Functions to senior manager roles in your firm
- Produce Statements of Responsibility and obtain individual sign-off and acceptance
- Build and maintain Responsibility and Governance Maps
- Develop a culture of accountability and quality evidence
- Deliver and evidence Fit and Proper assessments
- Record, monitor and manage Certification
- Pro-actively notify users and managers of upcoming lapses in Certification Regime compliance
- Keep robust, fully auditable records and evidence
- Deliver and monitor Conduct Rules training for Senior Managers and other staff
- Oversee adherence to Conduct Rules
- Manage breach notifications
If you would like to find out how we can help your firm tackle these and other Individual Accountability Regime challenges, please get in touch.