The Treasury said SMCR will apply to the insurance industry from 10 December
The Senior Managers & Certification Regime will come into force for the insurance industry on 11 December 2018, the Treasury confirmed today.
The new regulations, which will hold individual managers responsible for their firms’ regulatory compliance, is to be extended from the banking sector to other financial services including insurance.
The Treasury and the FCA said last year that they planned to bring insurance into the regulation, and today’s announcement confirms that will happen.
Senior executives in the insurance sector will be held personally responsible for misconduct, said economic secretary to the Treasury, John Glen.
The new rules will give consumers peace of mind that those at the top of the big insurers will be held personally responsible for any wrongdoing, he said.
The rules will also ensure that a code of conduct is set out for all staff, and that employees who do a job where they could do significant harm to consumers, or to the UK’s financial stability, are approved annually by their firm.
“Britain’s first-class regulation is one of many reasons our country is so attractive for financial services investment,” he said.
“The Senior Managers and Certification Regime plays a big part in this, ensuring that those at the top display the behaviours and values that the British people expect. The extension of the regime to insurance firms will ensure individual accountability for misconduct at the most senior levels within the insurance sector.”