Financial Conduct Authority chief executive Martin Wheatley is aiming to replace the approved persons regime with the licensing and senior persons regime by 2015.
Wheatley told the Treasury select committee this week that the changes were a “huge step forward” and would bring greater individual responsibility.
The Treasury is legislating for recommendations made by the parliamentary commission on banking standards to replace approved persons with a system of greater individual responsibility.
Subject to the passage of the Government’s banking reform bill, Wheatley says an FCA consultation will launch in early 2014 with the regime implemented the following year.
He said: “Moving to the senior persons and licensing regime with greater personal responsibility is a huge step forward from our current approved persons regime. We will get to a position with senior persons given specific responsibilities rather than amorphous which is confused across the organisation.
”There will also be stronger sanctions against individuals and a licensing regime which allows us to go to a much larger number of people in the organisation.”
Highclere Financial Services partner Alan Lakey says: “Changing the approval regime makes sense because if individuals take the profits then they have to take the pitfalls. There are still questions about whether the likes of ancillary staff or paraplanners will be included.”