The Senior Manager and Certification Regime (SMCR) is considered to be a response to the excessive risk taking and poor corporate culture from which the financial crisis and the LIBOR scandal emerged. At that time, accountability was in short supply and the SMCR sought to address this. In my recent paper I consider whether the SMCR is fit for this purpose and conclude that, although it is in principle, in practice it is falling short. The Government have pledged to begin to review its reform in the first quarter of 2023. (more…)
The past few years have witnessed a debate in the field of banking and broader financial services law: should the law relating to the duty of care owed by financial services firms to their customers be reformed? The Financial Services Consumer Panel (FSCP) argues that the answer to this question is yes; the current law does not provide consumers with adequate levels of protection, and thus the law needs to be. The current regulatory regime requires firms to treat their customers fairly, however the FSCP believes that banks and other financial services firms should be held to a higher standard and for this reason have advanced reform proposals to address this issue.
The purpose of this blog post is to analyse the content of the reform proposals and assess the viability of any reform, in light of the existing legal regime. It will be argued that, as indicated by the Parliamentary Commission on Banking Standards (PCBS) and the Financial Conduct Authority (FCA), the proposal advanced by the FSCP is unlikely to improve the law in this area. (more…)