On 30 January 2019, the Banking Standards Board (BSB) published a consultation paper (the Consultation) on its proposed good practice guidance regarding the Senior Managers & Certification Regime (SM&CR). The guidance has also been published.

The purpose of a regulatory reference is to provide firms recruiting people into certified roles, senior management functions or notified non-executive director positions with information relevant to the assessment of that person’s ‘fitness and propriety’ that they might not gain through other information supplied to them during the recruitment process.

The BSB explains that firms balance a range of significant considerations in implementing the regulatory reference requirements. These relate in part to legal and regulatory obligations, but also to more general, ethical principles such as transparency of process, and consideration of the importance of a regulatory reference to an individual’s career and livelihood. The BSB guidance aims to help firms navigate these considerations. It is not intended to be binding on BSB members.

There are four questions being consulted on the in the Consultation. The deadline for responses to the Consultation is 20 March 2019.