# Hiring Under SMCR: The Executive Roles Firms Keep Getting Wrong

Page: https://stenobird.com/podcast/exec-capital-7058871/hiring-under-smcr-the-executive-roles-firms-keep-getting-wrong
Text version: https://stenobird.com/podcast/exec-capital-7058871/hiring-under-smcr-the-executive-roles-firms-keep-getting-wrong.md
Podcast: [Exec Capital](https://stenobird.com/podcast/exec-capital-7058871)
Published: 2026-05-17T09:00:00+00:00
Episode link: https://www.spreaker.com/episode/hiring-under-smcr-the-executive-roles-firms-keep-getting-wrong--72039984
Audio file: https://api.spreaker.com/download/episode/72039984/19189692_hiring_under_smcr_the_executive_roles_firms_keep_getting_wrong.mp3
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Duration seconds: 52

## Resource

When people talk about hiring in financial services, they usually focus on experience, leadership, and culture fit.But in FCA-regulated firms, there’s another layer entirely — regulatory accountability.And that changes everything.Welcome to today’s episode, where we’re unpacking some of the most misunderstood Senior Management Function appointments under the UK’s Senior Managers and Certification Regime — and why firms are increasingly struggling to hire the right people into these positions.At Exec Capital , we spend a huge amount of time working with boards, founders, and regulated firms navigating exactly these challenges. Today we’re focusing on four particularly important appointments: SMF4 Chief Risk Officer SMF5 Head of Internal Audit SMF14 Senior Independent Director And the increasingly important Fractional MLRO model. Let’s start with SMF4.Segment 1 — The SMF4 Chief Risk OfficerThe role of the Chief Risk Officer has evolved dramatically over the last few years.Operational resilience, Consumer Duty, cyber governance, third-party risk, and DORA-related oversight have all expanded what firms expect from risk leadership. But many firms still approach SMF4 hiring like a traditional executive search.That’s often where problems begin.Under SMCR, the SMF4 holder carries direct regulatory accountability for the firm’s risk framework. In Enhanced firms, this is not optional — the FCA expects clear ownership, robust governance, and evidence that the individual can stand up to regulatory scrutiny. What makes these searches difficult is that experienced SMF4 candidates are selective.They assess governance quality, board engagement, operational resilience maturity, and whether the business genuinely supports second-line independence.Exec Capital’s SMF4 CRO Hiring Guide exp…

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