Senior Managers Regime

After years of planning the senior managers regime (SMR) was finally unveiled in 2016 in the UK. The regime is aimed at boosting personal accountability of managers in the financial services sector. It is part of a series of reform initiatives that have been undertaken in order to bring in more transparency and efficiency into the functioning of the sector.

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Responsibilities defined

The implementation of the regime is to ensure that certain key questions that would be there on the mind of someone heading a team are answered. For example, the spread of responsibilities of the individual are clearly defined now. Similarly, the ways in which the duties are to be discharged are also clearly explained. This kind of meticulous attention to detail is expected to further increase productivity in key financial sector areas such as banking and insurance. The importance being attended to the regime can be gauged from the fact that it allows the regulator to take action against those who are breaching the rules.


Delegation of work

One of the ways in which the program helps is by clearly defining how the delegation of work among the different team members needs to be done. With team work being so critical to the successful functioning of any organization, this particular aspect assumes importance. As part of the regime, there are specific steps that have been mentioned that those holding senior management positions should adhere to, whenever they are delegating work.


Overseeing compliance

This kind of a streamlined approach helps in a smooth flow of work. For example, every top manager is expected to clearly document the delegation of any responsibility as part of the new system. After delegation, it is also the manager's responsibility to oversee that the particular employee is discharging his or her duties properly. With increased accountability of the top management under the new regulation, the onus is now squarely on the top management to ensure that things move fast, which in turn also ensures a better work culture in the organization.


Reporting structure

As part of the new regime, not only are the steps that need to be followed clearly defined, the various controls that are in place to ensure that the work is done properly are also taken care off. For example, the reporting mechanism that everyone needs to follow in the organization is clearly defined. Since everyone would also be reporting on a regular basis, the top management also gets to know the exact status of each functional area in the organization.


Mentoring

One of the ways in which the senior manager's regime is being integrated into existing work cultures is by hiring the services of experienced mentors. This ensures that the several changes that have been brought about by the new regime are properly implemented. The various compliance exercises that need to be done in order to meet the regulatory requirements are best explained and demonstrated by mentors.