Keywords: Approved Persons Regime, Senior Managers Regime, Certification Regime
On 14 October 2014 HM Government introduced a bill into the House of Lords which will extend and reform the UK's new regulatory regime for individuals. The Bank of England and Financial Services Bill 2015 will extend the new regime to all regulated financial services firms, including insurers, investment firms, asset managers, insurance and mortgage brokers and consumer credit firms.
This means that the Approved Persons Regime will be completely replaced by the Senior Managers Regime and the Certification Regime. Conduct Rules will apply to all employees save ancillary staff. The new regime applies to banks, PRA-designated insurance firms and (re)insurers from March 2016. It is intended that it will be applied to all regulated firms in 2018.
The Bank of England and Financial Services Bill 2015 also abandons one of the most controversial aspects of the Senior Managers Regime: the reverse burden of proof. Instead, a statutory duty will be imposed on all senior managers to take reasonable steps to prevent regulatory breaches in their areas of responsibility.
Originally published 16 October 2015
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