View more on these topics

FCA and PRA unveil banker accountability rules


The FCA and the PRA have published final rules designed to ramp-up management accountability in the banking sector.

The rules cover banks, building societies and PRA-designated investment firms, and come after a clampdown on bonuses announced last month.

The new rules encompass the senior managers regime, the new conduct rules and the certification regime, which remains open to a consultation on a potential expansion to other wholesale employees such as traders.

In publishing the rules, the regulators are calling on firms to commence preparation for the new regime, with individuals carrying out senior management functions required to be pre-registered.

Firms will also be legally required to ensure they have procedures in place to assess the fitness and propriety of senior individuals before applying for approval and at least annually afterwards.

In addition, while staff falling under the certification regime, who could pose a risk of significant harm to a firm or customers, will not need to be pre-registered, the regulators will demand firms put in place procedures to assess their fitness and propriety.

Staff subject to the senior managers or certification regimes will also fall under the conduct rules from March 2016, while firms will have an extra 12 months to prepare for the wider application of the conduct rules to other staff.

The conduct rules set out a basic standard for behaviour that all those covered by the new regimes will be expected meet.

FCA chief executive Martin Wheatley says: “Today we have given clarity on rules that will embed personal accountability into the culture of The City. New conduct rules will add further momentum to improving standards across the industry.”

The publication marks the culmination of a two year process launched by legislation in the 2013 Banking Reform Act, which laid the groundwork for replacing the approved persons regime.


Pension wise logo

FCA reveals Pension Wise policing plans

The FCA has revealed how it will be policing the organisations providing Government-backed guidance service Pension Wise. In a policy statement published today, the regulator says if guidance providers fail to comply with its standards it can recommend redress is paid to users as well as steps to prevent future failures. Guidance providers are not […]

FCA logo new 2 620x430

FCA launches pension freedoms audit

The FCA has written to the chief executives of all pension providers as part of an investigation into the roll out of the pension freedoms. Firms are being asked to detail the options offered to customers seeking to access their savings; advice requirements for people who want to transfer out of schemes or into retirement […]


Simon Collins: Is your conduct risk strategy up to scratch?

There is nothing like an election to concentrate the mind on what our esteemed politicians believe we need to be thinking about for the future. Whether it is the economy or the NHS, defence or education, the smart money seems to be on a coalition again, it is just the permutations of who will court […]


Osborne set for pension freedoms tax windfall

The Treasury will gain more than double its original forecast in boosted tax revenue from the pension freedom reforms, according to figures from Hargreaves Lansdown. The Government originally estimated the freedoms would generate a £320m gain in its tax take in 2015/16, but Hargreaves says the true figure could be near £700m. Hargreaves Lansdown head […]

Japan: mid-year review and outlook

By Chris Taylor, Manager of the Neptune Japan Opportunities Fund H1 2014 Economy: after a harsh winter that slowed activity in the economy, the main event of the first half of the year has been the debate over what impact the 1 April VAT hike from five to eight per cent would have; we are […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm