City watchdog scales back banker accountability rules

THE CITY watchdog has scaled back plans for making non-executive board members at banks directly accountable for their decisions.

Monday, 23rd February 2015, 3:22 pm

The Financial Conduct Authority said that following its public consultation last year on the new Senior Persons Regime to make bankers more accountable, it has decided that only non-executive directors “responsible for key business areas and board committees” should come under the net.

“The revised regime reflects the fundamental difference in the role played by standard non-executive directors in comparison to other board directors, who have specific responsibilities,” the FCA said in a statement.

The NED roles that will be in scope of the new regime are chairman, senior independent director and chairs of the remuneration and nominations committees.

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“Within the regime, senior executives will be expected to take accountability for the conduct of the business for which they are responsible,” added the FCA.

“They are in a position to exercise a strong influence on the business and its culture through incentives and the messages that they give to staff.”

The watchdog claimed that “this clear line of accountability can have a positive effect on the culture of firms and on outcomes for consumers and markets”.