The final rules covers three points: Senior Managers Regime (SMR); the Certification Regime; and the new Conduct Rules. These new rules are based on recommendations from a 2013 report by U.K. lawmakers, which call for banks to revamp its culture and standards amid a series of scandals that recently gripped the industry. The Certification Regime, applies to all staff members who are in a position to “post significant harm to the firm or any of its customers” such as investment advisors. Companies will have implement procedures for assessing “fitness and propriety” of staff at financial institutions.
FCA’s latest paper shows the standard of behavior expected from individuals who are in the position of responsibility at overseas banks with U.K. offices and insurers affected by Solvency II.
