The UK Treasury has announced that insurers have until 10 December 2018 to prepare for the Senior Managers and Certification Regime (SMCR).

The SMCR was introduced in 2016 for the banking sector to encourage a culture where staff at all levels take personal responsibility for their actions. The regulations will now be extended to all regulated financial services firms including insurance firms.

The SMCR will replace the current Senior Insurance Managers Regime for insurers and extend beyond the biggest insurers overseen by the PRA to encompass most of the firms regulated solely by the Financial Conduct Authority (FCA).

City minister and Economic Secretary to the Treasury John Glen said: "The extension of the regime to insurance firms will ensure individual accountability for misconduct at the most senior levels within the insurance sector.

"Britain's first-class regulation is one of many reasons our country is so attractive for financial services investment. The SM&CR plays a big part in this, ensuring that those at the top display the behaviours and values that the British people expect," Glen added.

Co-ordinated PRA and FCA consultations on SM&CR will close on 21 February.