This morning, berg Chief Executive Alison Loveday joined Adam Parsons and the BBC 5 Live Wake Up To Money team as new banking regulations to hold senior managers accountable come into force today.
The new banking regulations including the Senior Managers Regime, which comes into force today 7 March 2016, aim to “support a change in culture at all levels”
…a change in culture at all levels
The Bank of England’s Prudential Regulation Authority (PRA) and Financial Conduct Authority have implemented the regime in response to complaints into banking conduct and a lack of accountability.
Alison Loveday, expert in financial regulation, joined BBC Five Live to discuss the implications of the new regulations and whether they can be truly effective.
“The clients that we’ve acted for really felt that there was no account particularly at a senior level and it was recognised by the Parliamentary Commission into Banking Standards that there needed to be changes and to identify personal responsibility – once that was in place they would be able to look at enforcement.”
Despite push back from the banks the regime allows the potential to put in place criminal sanctions.
“I think the key to this new regime is being able to identify who is responsible for what.”
This is a significant change with banking executives identified as senior managers signing up to a code of conduct which will hold them accountable.
the key to this new regime is being able to identify who is responsible for what
To find out more about the issues raised in this post, or to discuss any queries regarding your business banking relationship get in touch with Alison Loveday or call 0161 829 2599 to speak to our Banking and Finance team.
The information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by berg or any of its partners or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.