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.

The new rules include changes to the scope of the FCA’s approved persons regime; changes to the fitness and propriety assessment of candidates who operate in functions of “significant influence”; changes to governance that promotes accountability among senior staff members; and new conduct rules.

Martin Wheatley, FCA’s chief executive said that these regulations “are the latest changes aimed at embedding personal accountability in the culture of financial services and are a crucial step in rebuilding public trust.”

According to the financial regulator, these new rules will reduce the difference between incoming branches and U.K. banks, while limiting potential risk exposure in the U.K. market

For European Economic Area branches, the proposals also reflect the split of home and host state supervisory responsibilities under the relevant single market directives.