Schroders and Aviva Investors CEOs have warned of the dangers of the Senior Managers and Certification Regime (SMCR), which they said could enhance the hierarchical structure within asset management and lead to decisions being made by senior management who do not have the same specialist knowledge in a particular field as employees in the levels below them.
Speaking at the Investment Association's Culture In Investment Management event, Peter Harrison and Euan Munro said there would be a number of "unintended consequences" from the incoming regulation. SMCR, which comes into effect for wealth and asset managers on 9 December 2019, is an attempt by the Financial Conduct Authority (FCA) to make senior figures in firms more responsible and accountable for their actions. Under the new regime, the following roles will be considered senior manager functions (SMFs): chief executive (SMF1), executive director (SMF3), chair (SMF9), compliance ove...
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