0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

Forgotten your password?

in force: Senior Managers and Certification Regimes

10 March 2016
This week sees the implementation of the Senior Managers and Certification Regimes as well as the Senior Insurance Managers Regime, designed to reform behaviour and promote individual accountability in the banking and insurance sectors.

Much publicity had surrounded the creation of a new criminal offence for bank 'senior managers', relating to decisions that cause a UK bank or building society to fail, punishable with up to seven years’ imprisonment and an unlimited fine. Time will tell how successful a deterrent the new offence is and how readily enforceable it will be. Investigations will certainly be challenging.


The wider reforms will certainly have an impact on the industry. The Senior Manager regimes will require institutions to implement more formal and transparent definitions of managers’ responsibilities and procedures for assessing their fitness for the role. The Certification Regime for banks places the responsibility for assessing the fitness of potential risk-taking employees squarely with the institutions themselves.

The Government has scrapped the controversial 'presumption of responsibility'. However, the move towards greater individual accountability remains with the new 'duty of responsibility' that requires managers to take appropriate steps to avoid a regulatory breach.


New Conduct Rules will reframe the way in which institutions and senior managers are regulated, with their extension to other banking staff due to come into force by March 2017.

With the reforms expected to be rolled out to all FCA regulated institutions over the next two years, their early impacts will watched with interest by the whole industry.

Related opinions

Updated National Crime Agency (NCA) guidance: Shoot for better quality suspicious activity reports (SARs)

The National Crime Agency (NCA) published an updated guidance note for anti-money laundering supervisors targeted at improving the quality of suspicious activity reports (SARs) to make the best possible use of SARs and to minimise unnecessary delays, particularly where a defence against money laundering (DAML) has been sought.

View blog

Sports associations and clubs – keeping children safe from sexual abuse – Lessons learned from the Sheldon report

On 17 March 2020 a report by Clive Sheldon QC was published. He had been appointed by the FA back in December 2016 to carry out an independent review into allegations of sexual abuse by coaches and scouts working in youth football between 1970 and 2005.

View blog

Headline points of the 2021 Budget for employers & the self-employed

Yesterday’s announcement already seems to be a seminal moment on the road to recovery from the impacts of the pandemic. Here are some of the headline points.

View blog

The Debt Respite Scheme and its implications for creditors

The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 is due to come into force on 4 May 2021. It’s a snappy title but what exactly is it?

View blog

Mailing list sign up

Select which mailings you would like to receive from us.

Sign up