Last checked at 
By Huw Jones
LONDON, Sept 10 (Reuters) - Britain's new system of banker
accountability has led to a "tangible" improvement in culture
but modest changes are still needed, UK Finance said on Tuesday.
The trade body for banks in Britain published the sector's
first major appraisal of the senior managers and certification
regime (SMCR) introduced in 2016 as part of reforms implemented
after the 2007-09 financial crisis that left taxpayers to bail
out lenders while few individual bankers faced punishment.
SMCR makes it easier for regulators to pinpoint blame when
things go wrong.
Barclays Chief Executive Jes Staley was the first to be
punished under the regime when he was fined a combined 1.1
million pounds ($1.4 million) last year for trying to identify a
whistleblower who had sent letters criticising an employee of
the bank.
UK Finance said the report - compiled with law firm Ashurst
and based on a survey of 60 senior managers across 25 banking
institutions - showed that banks are now more cautious about
taking risks and are committed to implementing SMCR.
"Our report shows that since the introduction of the SMCR
there has been a meaningful and tangible change in culture,
behaviour and attitudes towards risk," UK Finance said.
"It is clear that the SMCR has focused senior managers'
minds in terms of individual responsibility, but there is less
evidence that others within firms have a similar focus."
The Financial Conduct Authority has said that measurement of
improvements in culture is still in its infancy.
Britain was first to implement such a system, raising
concerns among banks that regulators wanted "heads on sticks".
But Tuesday's report found that banks could still attract
staff and that lenders have benefited from a clearer view of
roles and responsibilities, UK Finance said.
The report also called for regulators to introduce a lighter
version of SMCR for smaller banks and building socieities in an
effort to alleviate some of the "disproportionate regulatory
burden" imposed by the common approach for all lenders.
It also wants regulators to replace the demand for continual
updates of who does what at a bank with less burdensome
semi-annual or annual updates.
Senior managers should also have a right to access their
records in the event of a regulatory investigation after they
have left a bank, the report recommended.
(Reporting by Huw Jones
Editing by David Goodman)
