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The New Senior Management and Certification Regime – Are you taking reasonable steps?

Understanding what is meant by Reasonable Steps…

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  • SM&CR introduces a statutory duty of responsibility for all Senior Managers to take reasonable steps to prevent and detect regulatory breaches from occurring in their respective areas of responsibility.
  •  Provides the opportunity for more precise enforcement by regulators against Senior Managers for their failings to take reasonable actions in the event of a contravention.
  • The burden of proof to determine when reasonable steps have not been taken rests with the Regulators.
  • Regulators will evaluate the actions taken by the individual against actions that they would reasonably expect to be taken to prevent and detect the breach from occurring. They will also consider other alternative actions that could or should have been taken to prevent the regulatory contravention.