Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Banks demand deep changes to UK's accountability rules -sources

Banks demand deep changes to UK's accountability rules -sources

Banks are pushing the British government to relax core parts of post-financial crisis rules designed to hold bosses to account for misconduct on their watch, in order to make hiring easier, two industry sources told.

Britain's Conservative government has said it will rework the 7-year old Senior Managers and Certification Regime to help boost the City of London's global appeal after Brexit.

Financial firms are preparing a case for scrapping the FCA Register, which lists all approved finance workers, one of the sources said, ahead of a forthcoming consultation which City Minister Andrew Griffith has said is expected within weeks.

Banks also want the government to ditch a requirement to certify senior officials below the top ranks such as CEO and CFO as "fit and proper" to hold roles, this source said.

Some hires need vetting by the Financial Conduct Authority (FCA) and the Bank of England (BoE).

"It is the right time for government and regulators to review the regime," said Simon Hills, director of prudential regulation at bank lobby group UK Finance.

The demands, which have been flagged in informal exchanges in recent months, represent the cornerstone of the industry's likely formal feedback to the pending government consultation.

But while Griffith told lawmakers this month he had already heard about industry hiring delays and difficulties recruiting from overseas, he played down the chances of radical changes amid pressure from transparency groups.

"It has turned out to be quite weak, but that is not necessarily a reason to water it down," said Simon Youel of Positive Money, which campaigns for a fair financial system, noting enforcement action under the rules was rare.

And Kay Swinburne, vice chair of KPMG UK's financial services practice, said that it was unlikely 'fit and proper' certification would be ditched entirely.


'LESS BUREAUCRATIC'


Regularly updating the FCA Register means significant administration costs, Hills said, adding members were still supportive of the regime's overall purpose and would await the consultation to make their case in full.

A third source at a global bank said reforms should focus on making the regime less bureaucratic, including the hiring process for certified employees, but added they were strongly in favour of a system that had been emulated overseas.

Bureaucratic hold-ups have led to delays of up to four months on authorising senior hires, a separate source said.

The proportion of approvals by the BoE within the 90-day statutory time limit dropped to 69% last year, down from 99% in 2019, data from bank lobby group TheCityUK collated from regulatory reports showed.

The proportion of on-time approvals by the FCA dropped to 86% from 99% over the same period, the data showed.

The FCA said it has made significant progress, reducing its pending case load by half. "We will meet our targets by March this year," it added.

The finance ministry referred to Griffith's comments in parliament. The BoE, which has had around 10 mostly ongoing SM&CR investigations, declined to comment.

Britain introduced the accountability rules in 2016 in response to public anger that so few individuals were punished over taxpayers having to bail out banks in the 2007-2008 financial crisis.

Regulators sought to reassure that the rules would not be used to put "heads on sticks" and discourage people from taking on senior roles. Head hunters say it is now only cited by those joining the banking sector from outside.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
German Chancellor Friedrich Merz: “The Current Welfare State Can No Longer Be Financed”
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
Wizz Air passengers screamed as storm-battered flight diverts to Bologna
European postal services halt U.S. deliveries after Trump imposes new tariffs
Urban explorer finds abandoned luxury restaurant left to decay
Fidesz leader labels Péter Magyar a ‘bluffer’ amid escalating political spat
French rope park operator arrested for denying entry to Israeli children
Újpest thrashes Zalaegerszeg 4-1 to secure first win in five matches
Profit-margin cap costs retailers 13 billion forints a month, warns trade group
Curiosity rover finds coral-like rock on Mars hinting at watery past
U.S. green policy rollback drives investors to Europe’s sustainable finance market
Special funerals rise in Hungary: boat, aerial and forest burials gain popularity
Hungary’s Kiskunság region turning into semi-desert after extreme drought
Kopasz Bálint wins world kayak 1000 m title in Milan, making him triple world champion
Budapest’s Keleti railway station to close for four weeks for track overhaul
Balaton could be unfit for swimming by 2035 and dry by 2050, scientists warn
Leaked guidelines show Meta’s AI allowed flirty and racist interactions with children
Filming of ‘Emily in Paris’ halted after assistant director dies on set
Filipino guest workers sue after Hungary moves to deport them for pregnancy
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
Beijing Military Parade to Showcase Weapons Advances
×