THE SMCR COUNTDOWN BEGINS - “ADVISERS NEED TO EMBED THE RIGHT CULTURE IN THEIR BUSINESS”
Latest Accord Growth Series podcast advises brokers on how to prepare.
With 100 days to go until the Senior Managers and Certification Regime (SMCR) replaces the Approved Persons Regime, brokers need to “engage with the scheme” and “do what is expected of them” according to Simon Lovell, Field Compliance Manager at TMA Club.
Highlighting the impending deadline in the latest Accord Growth Series podcast, Lovell explained what the changes will mean to brokers, their businesses and the industry itself.
Developed by the Financial Conduct Authority (FCA) after the financial crisis in 2008, the SMCR aims to reduce harm to consumers and strengthen market integrity by making individuals more accountable for their conduct and competence.
The scheme, which was adopted by banks and building societies in March 2016 is now being extended to solo-FCA regulated companies replacing the existing Approved Persons Regime. Whilst high level awareness is currently good, Lovell commented that the majority of brokers were not yet ready for the deadline.
He added: “Firms should embrace the new requirements. The regime ensures staff at all levels take responsibility for their actions and should change cultures and behaviours to deliver good customer outcomes. It takes time, energy and resource which is not readily available in smaller firms, so TMA has created a number of resources to try and provide guidance to brokers.”
Jeremy Duncombe, Director of Intermediary Distribution at Accord Mortgages, who interviewed Lovell said: “Everyone in the industry has a duty of responsibility to ensure we are acting in a ‘fit and proper’ way and providing the best service.
“Whilst meeting new compliance guidelines can be a daunting prospect, the sooner brokers can identify the actions needed and start implementing the changes, the easier it will be. There’s a lot of help and information out there from firms like TMA, via our Growth Series, and from The Association of Mortgage Intermediaries (AMI), so you don’t have to do it alone.”
To hear the podcast in full, please visit: https://blog.accordmortgages.com/podcast-25-smcr-is-coming-what-brokers-need-to-know
Brokers can sign up to receive the Growth Series material for free at https://info.accordmortgages.com/growth-series