View more on these topics

FSA: Failed bank bosses could be banned from top jobs

The FSA is putting together plans which could see former directors of failed banks being banned from running financial institutions.

The regulator’s business plan, published yesterday, says the FSA will is looking at a number of ways to make it easier to refuse an approved persons application. The FSA will set these out is a discussion paper set to be published in the first six months of this year.

It says: “We are examining various options to make it easier to refuse an application for an approved persons status on the basis that the person’s previous role as a director of a bank that failed raises fundamental questions about their competence or general suitability to perform a similar role again.”

Tens of billions of pounds of public money was spent when Royal Bank of Scotland and Lloyds Banking Group needed bailing out by the Government at the height of the financial crisis in 2008. RBS is now 82 per cent state owned while 40 per cent of Lloyds is in public ownership.

Northern Rock’s business model was heavily dependent on wholesale funding markets and when liquidity dried up in 2007, its customers withdrew billions of pounds in the first run on a bank for over a century. Eventually the bank was nationalised in February 2008.

Recommended

MAM scraps Midas core holding hunt

MAM Funds has abandoned its search for a multi-strategy hedge fund to act as a core holding for the hedge fund allocation of its Midas balanced growth fund. Fund managers Simon Callow and Mark Wright had intended to take a core and satellite approach to hedge funds but they have not found a liquid, multi-strategy […]

boulding

Lifting restrictions on Nest could break EU law, says Boulding

Legal & General pensions strategy director Adrian Boulding says removing restrictions on Nest, as suggested by the work and pensions select committee, could break European Union law. Nest was set up with a loan from the Government and will start operating in October, with an annual cap on contributions and a ban on transfers in […]

More 2 Life increases maximum loan size and cuts rates

Equity release lender More 2 Life is increasing maximum loan sizes by a third and cutting rates as it moves to increased individual underwriting. Customers are now assessed for different levels of medical and lifestyle impairment with rates cut by 0.2 per cent and maximum loan-to-value deals increased by up to 11 per cent. Someone […]

1

Budget 12: What to expect from today’s Budget

This afternoon, the Chancellor will deliver his third Budget. With much of the direction of travel set out in previous fiscal set pieces, and a fair bit of leaking ahead of the big event, it is not expected to contain many surprises. Here is a round-up of what you can expect to hear as Osborne […]

Directors, limited liability partners and auto-enrolment

By Jim Grant, Senior Product Insight & Technical Support Analyst 6 April 2016 brought in changes to employer duties for directors and partners in limited liability partnerships. Here we explain exactly what’s changed. Before 6 April 2016… Directors of limited liability companies where there were no other directors or employees were exempt from the employer […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. I am no lover of what the FSA has done to our profession but at last this may make future Fred the Shred’s think twice before they act with perceived impunuity. Next they need to ensure that personal fines are much more easily available to be imposed on the same people that they ban in the same way that they do for IFA’s who blatently cause client harm. Its just a pity that when Sants took over he didnt make this a priorty. By his own admission he and the FSA were owerless to act against RBS over the Amro purchase even though “the FSA had serious miss-givings about the risk this imposed”. AS they are very good at imposing retrospective changes they should persue these bafoons with fines in the future for stuff they did in the past.

  2. Will the same apply to failed regulators?

    BTW, what is persue and what are bafoons?

    Do the mandatory RDR qualifications include a basic grasp of the English language?

  3. That’s fine as long as failed FSA personnel then can’t get jobs at the Banks.
    Oh look another flying pig!!!

  4. How about the former Director of Risk from RBS (who caused much of the mahem) now in charge at Virgin Money ?

  5. Beware of what you wish for.
    The report says “to make it easier to refuse an approved persons application”. Not possible, but easier. If such rules come into play that it is highly likely that they will apply to everyone.
    As we all know the Rule of Law is unknown in Canary Land. Just because you are mildly irritated at bankers (that is the right phrase?) do not support action that can have repercussions lower down the pecking order.
    Any change in approved person regulation should be matched by facilities for appeal, and for transparency of process.
    And be careful that draconian regulation does not encourage banks to move their domicile offshore. For the moment we certainly need the employment they provide

Leave a comment