Shearman & Sterling LLP | Financial Regulatory Developments Focus | UK Senior Manager Misconduct Provisions Come Into Force
Financial Regulatory Developments Focus
  • UK Senior Manager Misconduct Provisions Come Into Force

    Two pieces of secondary legislation brought the revised provisions published on May 5th in the Bank of England and Financial Services Act 2016 on senior manager misconduct into force. The revised provisions replace the presumption of responsibility for a senior manager when a breach of regulatory provisions occurs in the area that he is responsible for (originally brought in by the Financial Services (Banking Reform) Act 2013), with a duty of responsibility. For a senior manager to be found guilty of misconduct by one of the UK regulators, the Prudential Regulation Authority and/or Financial Conduct Authority will need to prove that a senior manager did not take reasonable steps to prevent the contravention by his firm from occurring or continuing.

    View the Order.

    View the Regulations