Bank of England to unveil changes to City regulations
The governor of the Bank of England will on Tuesday announce tighter City regulations that will make it easier to prosecute those working in the banking sector.
The tougher guidelines, which will be sent out to major British banks, insurers and asset managers, are part of the Senior Managers Regime that has been set up to clarify the lines of responsibility at the top of banks and enhance regulators’ ability to hold senior individuals in banks to account.
Under the regime, the Financial Conduct Authority (FCA) will change the defence bankers must give in legal cases, so that they will now have to prove they were not aware of illegal practices and dubious behaviour, the Sunday Times reported. The new charge of "reckless misconduct" will also be brought in.
The change in the rules will see the industry's highest earners face punishment for the failings of their organisations.
FCA chief Martin Wheatley said: "We want those senior individuals to be held accountable for the decision they make and oversee; this is what people inside and outside the banking sector expect."