Financial Conduct Authority confirms approach to improving responsibility and accountability in the banking sector

The Financial Conduct Authority (FCA) has today confirmed its approach to improving individual responsibility and accountability in the banking sector by publishing feedback which:

  • sets out how the FCA will implement the Senior Managers Regime (SMR); and
  • provides further information on the FCA’s plans for the Certification Regime (CR) and new Conduct Rules.

The policies announced today are significant and will make it easier for firms and regulators to hold individuals to account.

Following strong demand from firms, the FCA is also today consulting on further, more detailed guidance on how the FCA will apply the Presumption of Responsibility. Additionally, we have published a separate consultation, jointly with the Prudential Regulation Authority (PRA), on the accountability regime for incoming branches of foreign banks.

Martin Wheatley, Financial Conduct Authority CEO commented:

“How a firm conducts its business and treats its customers must be at the heart of how it operates and this has to start at the top. Today’s policy measures are an important step in ensuring that regulators have the tools at their disposal to hold individuals to account and  they build on the cultural change we are beginning to see in the boardrooms of firms across the country.”

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