The Senior Managers' Regime (SM&CR) is already in place for banks and insurers and is about to be rolled out to other regulated firms. It will force both firms and regulators to view each other differently and challenge them to adapt accordingly.

This piece sets out my initial thoughts on what will change and why, and includes a short video by Gareth Morris on how the new regime will affect firms' culture.

Perhaps most fundamentally, the new regime will weaken silos in both firms and regulators. Managing its consequences will be one of the stories of the next few years.