Senior Management Regime

Definition ∞ A Senior Management Regime is a regulatory framework that holds senior executives personally accountable for the conduct and compliance of their financial institutions. This regime clearly delineates responsibilities for key management functions, ensuring that individuals at the highest levels are answerable for preventing misconduct and maintaining sound operational controls. It aims to foster a culture of individual accountability and robust governance within regulated entities. The framework applies to a broad range of financial services, extending oversight to decision-makers.
Context ∞ The application of a Senior Management Regime to virtual asset service providers is a growing area of discussion in regulatory news concerning digital assets. Authorities consider how to extend these accountability frameworks to crypto exchanges and other entities handling digital currencies to enhance consumer protection and market integrity. This development reflects a trend towards greater personal liability for executives in the evolving digital finance sector.