In this Feedback Statement we report on the main issues arising from Consultation Paper 15/10 (Strengthening accountability in banking: UK branches of foreign banks) and publish the near final rules.
Why are we issuing this Feedback Statement?
In March 2015 we consulted jointly with the Prudential Regulation Authority (PRA) on a new regulatory framework for individuals working in UK branches of overseas banks (incoming branches). The proposals were intended to encourage senior individuals to take greater responsibility for their actions, and to make it easier for both firms and regulators to hold individuals to account, while improving conduct at all levels.
The consultation proposals were based on our new individual accountability regime for UK banks, building societies, credit unions and PRA-designated investment firms (UK relevant firms) and included amendments to tailor the regime for incoming branches.
In this paper we are providing near-final rules in anticipation of secondary legislation that will extend the statutory elements of the regime to incoming branches. By publishing near-final rules ahead of this legislation, we aim to give firms as much time as possible to prepare for the changes. We plan to publish our final rules later in the year, as soon as is possible after the secondary legislation is finalised.
Who is this aimed at?
This paper affects incoming branches of non-UK firms that have permission to accept deposits or to deal in investments as principle (where that activity is a PRA-regulated activity) in the UK. The regime does not apply to Europe Economic Area (EEA) firms that do not have a branch in the UK. This paper also affects UK relevant firms, as some of the revised policy and Handbook text is also applicable to these firms.
What are the next steps?
We will publish a policy statement later in 2015 finalising the rules, subject to finalised secondary legislation. We will also include any remaining technical changes (including any further consequential changes) in our final Handbook rules.
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