15 October 2015
Senior Managers and Certification Regime Update
In an astonishing eleventh hour U-turn, HM Treasury has announced the abandonment of the highly contentious presumption of responsibility for senior managers within banks.
The Regulator will therefore continue to carry the burden of proof in regulatory investigations against senior managers. The presumption of responsibility is to be replaced by a new statutory duty of responsibility on senior managers to take reasonable steps to prevent a regulatory breach.
As predicted, it has also now been confirmed that the SM&CR will be extended across all regulated firms from 2018.