One of the biggest changes to FCA regulation in recent years was the need to comply in full with The Senior Managers and Certification Regime (SMCR). This legislation requires employees who have roles in regulated activities to get certified yearly, and the FCA updated this to include solo-regulated firms as of March this year.
The main objective of SMCR is to prevent harm to the consumer whilst strengthening the integrity of the market. Nevertheless, the risk to firms and individual senior managers (who are personally responsible for wrongdoing) is tangible. With personal fines and the possibility of prison time at stake, a manual or ‘ homegrown’ solution is no longer feasible. The prudent option would be technology, instead – a technological solution that will inspire a culture of compliance and simplify the practical tasks being compliant entails.
Here are 5 ways investing in RegTech can help:
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Automation
Automation is the key to successful compliance with SMCR. Technology enables the automation of many processes, and this not only reduces administration time but provides greater protection and reduces risk. Dedicated SMCR software mitigates breaches and outperforms the irregularities of manual solutions.
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Centralised Repository
SMCR software consolidates all SMCR-related data from across an organisation into a single platform. Everything is stored centrally, providing greater visibility so that stakeholders can instantly view and verify the information required.
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Positive Engagement
User-friendly software encourages positive engagement and increases the confidence of senior managers. Individuals are presented with responsibilities and prompted for actions. The intuitive interfaces can remove the need for any costly end-user training and improve the user experience of the SMCR process.
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Transparency
With technology available, firms can integrate and easily share conduct-related data. Up-to-date certificates, mapping and other ‘regulator ready’ documents can be created and provided to FCA.
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Simplify Reporting
Technology can be a powerful tool for streamlining reporting and analysis of SMCR data which can then be presented to senior leaders.
For the reasons given above it is highly likely that in future, regulators will consider current technology best practices in their compliance assessments. So, by switching to a technological solution, you will have the edge when it comes to stronger systems and accountability.
Many regulated entities prefer investing in RegTech simply because they don’t have the technological capacity or expertise to maintain and update such a system in-house. A third-party provider can deliver software solutions, as well as industry insights and knowledge that is hard to rival.
Find out how the 1RS can help your organisation manage and comply with the SMCR requirements.
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