FCA to introduce new senior accountability rules

"We have observed that firms are taking their responsibilities seriously and have broadly got the regime right. But we recognise culture change takes time and there is still more to do."

Introduced in March, the regime sets out the standard of behaviour expected of those in positions of responsibility and ensures that senior banking managers are now individually accountable for the areas they are responsible for.

The new rules will now be extended to all non-executive directors of banks and insurers and will require UK branches of overseas banks to tell their UK based employees about the whistleblowing services offered by the FCA and the PRA.

The FCA will also introduce new guidance for senior managers on the ‘Duty of Responsibility’,
   
In addition, the FCA will publish a discussion paper about how those heading up the legal function in firms should be treated under the Senior Managers and Certification Regime.

The Senior Managers’ and Certification Regime will be extended to all regulated financial services firms from 2018.

Andrew Bailey, Chief Executive of the FCA, said: “Six months on and, in a great many cases, firms have made a substantial effort to get this right and embrace the importance of the key principles underlying the Senior Managers and Certification Regime, namely responsibility and accountability.

“Knowing who is responsible for what is critical for firms and regulators and we have seen genuine engagement on this from the Board down.

“Generally, we have observed that firms are taking their responsibilities seriously and have broadly got the regime right. But we recognise culture change takes time and there is still more to do. So we have to keep a watchful eye on the progress firms are making.”