View more on these topics

Wheatley: FCA will not go hunting for scalps

Martin-Wheatley-Speaking-2013-700.450.jpg

The FCA will not use rules designed to increase accountability in banking to “hunt for scalps”, says chief executive Martin Wheatley.

The regulator published its final rules for an accountability framework for individuals working in banks, building societies and credit unions earlier this month.

The framework aims to ensure that senior managers can be held accountable for any misconduct that falls within their area of responsibility.

It includes the senior managers regime, through which the FCA will approve senior figures individually, and the certification regime, where firms must certify that certain staff are fit and proper for their roles on an ongoing basis.

In a speech at the City & Financial conference this week, Wheatley said the regime is designed to be proportionate, and to fit with “the realities of running complex financial services firms”.

He said the FCA has had a lot of pushback from firms on the ‘presumption of responsibility’. This means that where a firm breaches regulatory rules, a senior manager can be found guilty of misconduct unless they can prove they took reasonable steps to avoid the breach.

The FCA is currently consulting on this issue.

Wheatley said: “We will use our enforcement powers proportionately and fairly – including the presumption of responsibility. We will not go hunting for scalps.

“I understand it worries firms that the FCA cannot say ‘if you do X, Y and Z you’ll be fine’; but in the same breath, it is equally true that senior managers are not automatically going to be fined.”

When using the presumption of responsibility, Wheatley said the regulator might ask senior managers to demonstrate they have implemented adequate training, and clearly communicated to staff their responsibilities, for example.

Wheatley added: “Scandals such as FX and Libor remind us of the importance of ensuring that the standards we expect permeate all aspects of industry.

“But these scandals should not be taken out of context. I think we have every reason to be positive about the ability of banks and the industry more generally to prove itself well-equipped to adopt, and adapt to, a regulatory regime that prizes individual accountability highly.”

Recommended

George-Osborne-Serious-At-Budget-2014-700.jpg
12

Osborne refuses UK contribution to Greece bailout

Chancellor George Osborne is to refuse the UK’s part in the new €86bn Greek bailout, saying it goes against a previous agreement of EU leaders in 2010. Downing Street is said to be angered by the most recent deal struck by European leaders on a Greek bailout, reports the FT, which would see the country’s contribution […]

UK-Currency-Money-Pound-GBP-620x430.jpg
4

The Lang Cat: Platform custody costs will not fall to 15 bps

Platform custody costs will not bottom out at 15 bps in the next five to 10 years, according to The Lang Cat. The platforms, pensions and investment consultancy says in a report on the advised platform market that since 2011 custody costs have fallen by seven to eight basis points, or 18 per cent. The […]

UK-Currency-Money-Pound-GBP-620x430.jpg
3

City investors sue over film partnership schemes

More than 100 investors including former Lazard International chairman Ken Costa and Investec private equity head Christian Hess are suing film partnerships firm Ingenious over the schemes. The Mail on Sunday reports investors have issued a writ in the High Court against Ingenious and more than 50 associated companies. These include Coutts, HSBC Private Bank […]

Business-People-Silhouette-Leaving-Walking-700x450.jpg

Investec to bring Diversified Growth fund to retail market

Investec will bring its Diversified Growth fund to the retail market later this year, competing with the likes of GARS in the space. David Aird, UK managing director at Investec Asset Management, says the manager will start a retail push for the product in autumn this year. The product targets CPI + 5 per cent, categorising […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Wheatley likes his Wild West metaphors. ‘Shoot first and ask questions later’ now ‘not hunting for scalps’. Seem almost contradictory to me.

  2. Gavin Fielding 16th July 2015 at 9:58 am

    Alan, so no ‘Wanted Dead or alive posters’ but we better ‘circle our waggons’ just in case there’s a storm a commin!

  3. Gentlemen – surely you are not suggesting the FCA are a bunch of cowboys?

  4. Julian Stevens 16th July 2015 at 2:49 pm

    Heard the one about the Gay Gunslinger?

    Rode into town and shot up the sheriff.

  5. Unnecessary Julian – grow up

  6. “The framework aims to ensure that senior managers can be held accountable for any misconduct that falls within their area of responsibility”.

    Err..if you’re not going to “hunt for scalps”, what’s the point of having such a framework….?

Leave a comment