CP17/42: The Duty of Responsibility for insurers and FCA solo-regulated firms

Open consultation: CP17/42
13/12/2017
13/12/2017
Consultation closes
21/02/2018
Policy Statement
Summer 2018

We are consulting on how we will apply the Duty of Responsibility to insurers and FCA solo-regulated firms.

CP17/42: The Duty of Responsibility for insurers and FCA solo-regulated firms (PDF)

What we are consulting on

Since May 2016, the Duty of Responsibility has applied to Senior Managers of banking firms. It will also apply to Senior Managers of insurers and FCA solo-regulated firms when the Senior Managers and Certification Regime is extended.

Under the Duty of Responsibility, we can take enforcement action against Senior Managers if:

  • there was a contravention of a relevant requirement by the Senior Manager’s firm
  • at the time of the contravention or during any part of it, the Senior Manager was responsible for the management of any of the firm’s activities in relation to which the contravention occurred
  • the Senior Manager did not take such steps as a person in their position could reasonably have been expected to take to avoid the contravention occurring or continuing

This paper sets out how we plan to apply the Duty of Responsibility to insurers and solo-regulated firms once the Senior Managers and Certification Regime is extended.

Who this consultation is aimed at

This Consultation Paper will be of interest to insurers, FCA solo-regulated firms and the senior management of both.

Consumers may be interested in how our approach sits within our initiative to improve culture and governance in firms.

What you need to do

Please send us your comments by 21 February 2018.

Online response form for CP17/42

You can also:

  • email [email protected] or
  • write to Enforcement Policy, Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS

Next steps

We will consider your feedback and aim to publish a summary of responses and a policy statement in summer 2018.