<
p>British bankers will soon face tighter rules which will enable the FCA and the PRA to fine or sanction for misconduct.
The Senior Managers and Certification Regime (SM&CR), which is set to come into force in March 2016, will enhance the capabilities to hold senior bank managers to account for misconduct.
If reckless trading results in the failing of their institution, they could expect seven year behind bars.
Commenting on the tougher rules, Andrea Leadsom, Economic Secretary to the Treasury, said: “A key part of our long term economic plan is to restore trust in Britain’s banking sector so that it works much better for customers and businesses. Ensuring that our banks are properly run is vital for the health of our economy.
“That’s why I’m delighted to confirm the next step of the government’s work to raise conduct standards in the banking sector, including the new criminal sanctions for reckless misconduct by bankers we are introducing. We are determined to make sure that all banks in Britain operate with the highest standards.”
A consultation was issued by the Government in November discussing whether the regime will also be applied to UK branches of foreign banks. This has now been given the green light.
Firms will have until the 8th February next year to declare the names of their senior staff to the regulators.
Government is due to arrange debates on this subject at the earliest occasion in the next Parliament, additionally the PRA and the FCA will consult on additional SM&CR rules.
Also, as part of the Treasury Committee’s remit to scrutinise the PRA, it took evidence from external members of the PRA’s Board, as well as evidence from the Bank of England’s Deputy Governor, Andrew Bailey, at Portcullis House yesterday.
British bankers will soon face tighter rules which will enable the FCA and the PRA to fine or sanction for misconduct….
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