Top bankers on the hook as UK con­duct rules get per­sonal

The Pak Banker - - FRONT PAGE -

Start­ing Mon­day, UK reg­u­la­tors' ef­forts to crack down on mis­con­duct in the City of Lon­don will get per­sonal. The Se­nior Man­agers and Cer­ti­fi­ca­tion Regime is in­tended to make peo­ple work­ing in fi­nan­cial ser­vices, from banks to pay­day lenders and in­vest­ment firms, di­rectly ac­count­able for mis­con­duct that oc­curs on their watch. Firms have to spell out to reg­u­la­tors the re­spon­si­bil­i­ties of each se­nior man­ager along with a blue­print that shows how their ar­eas in­ter­sect. Top em­ploy­ees must be pre-ap­proved by reg­u­la­tors.

The rules are part of the govern­ment's re­sponse to the fi­nan­cial cri­sis, when au­thor­i­ties strug­gled to pros­e­cute in­di­vid­u­als who had led their firms into tax­payer-funded bailouts be­cause their re­spon­si­bil­i­ties weren't clearly de­fined.

"This gives some cer­tainty and should re­sult in more ef­fec­tive gov­er­nance and mon­i­tor­ing of the way the firm man­ages its em­ploy­ees," said Michael Potts, man­ag­ing part­ner of Lon­don law firm Byrne and Part­ners. "How­ever, in­di­vid­u­als iden­ti­fied as se­nior man­agers will be rightly alarmed by the rigid­ity in this frame­work."

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