In this policy statement we set out final rules for the new accountability framework for individuals working in banks, building societies and credit unions who perform certain wholesale market activities.
This policy statement sets out final rules for the new accountability framework, which we consulted on in July 2015.
We also provide initial feedback on CP15/31: Strengthening accountability in banking and insurance: regulatory references (October 2015) as well as our final rules on an interim regime for referencing, pending a permanent set of rules for references, including transitional arrangements, which we aim to publish in the summer.
As well as ensuring that, in future, senior managers can be held accountable for any misconduct that falls within their area of responsibility, our regime aims to hold individuals working at all levels in banks and other relevant firms to appropriate standards of conduct.
PS16/3: Strengthening accountability in banking: Feedback on CP15/22 (July 2015) and CP15/31 (October 2015); final rules on extending the certification regime to wholesale market activities and interim rules on referencing [PDF]
Our feedback on CP15/21 and final rules will be of primary interest to banks, building societies, credit unions and PRA-designated investment firms. The referencing requirements will also be of interest to all firms, and in particular Solvency II and large non-directive insurers.
Both UK relevant authorised persons (RAPs) and foreign branches should consider this in conjunction with our other publications on the accountability regime.
This policy statement will primarily be of interest to firms. Consumers may be interested in how individual accountability is being enhanced within relevant firms, or how staff that they interact with will be required to comply with the conduct rules. More generally, the changes in this policy statement may be thought of as part of a broader initiative to improve the culture and governance of banks and other relevant firms, which should bring significant benefits to consumers.
If your firm is affected by the Senior Managers and Certification Regime, you will need to ensure that you are ready for when it comes into force on 7 March 2016.
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