Today, HM Treasury announced that it planned to make changes to the Senior Managers’ and Certification Regime, which was introduced by the Financial Services (Banking Reform) Act 2013.
The Government now considers it appropriate to extend the Senior Managers’ and Certification Regime to all financial services firms and to replace the ‘presumption of responsibility’ for senior managers with a ‘duty of responsibility’.
You can find out more information on HM Treasury’s website.
Tracey McDermott, acting chief executive of the FCA, said:
'Extending the Senior Managers’ and Certification Regime is an important step in embedding a culture of personal responsibility throughout the financial services industry.
'While the presumption of responsibility could have been helpful, it was never a panacea. There has been significant industry focus on this one, small element of the reforms, which risked distracting senior management within firms from implementing both the letter and spirit of the regime. The senior managers' and certification regime is intended to deliver better decisions to help avoid problems arising. We remain committed to holding individuals to account where they fail to meet our standards.'