Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

Banks demand deep changes to UK's accountability rules -sources

Banks demand deep changes to UK's accountability rules -sources

Banks are pushing the British government to relax core parts of post-financial crisis rules designed to hold bosses to account for misconduct on their watch, in order to make hiring easier, two industry sources told.

Britain's Conservative government has said it will rework the 7-year old Senior Managers and Certification Regime to help boost the City of London's global appeal after Brexit.

Financial firms are preparing a case for scrapping the FCA Register, which lists all approved finance workers, one of the sources said, ahead of a forthcoming consultation which City Minister Andrew Griffith has said is expected within weeks.

Banks also want the government to ditch a requirement to certify senior officials below the top ranks such as CEO and CFO as "fit and proper" to hold roles, this source said.

Some hires need vetting by the Financial Conduct Authority (FCA) and the Bank of England (BoE).

"It is the right time for government and regulators to review the regime," said Simon Hills, director of prudential regulation at bank lobby group UK Finance.

The demands, which have been flagged in informal exchanges in recent months, represent the cornerstone of the industry's likely formal feedback to the pending government consultation.

But while Griffith told lawmakers this month he had already heard about industry hiring delays and difficulties recruiting from overseas, he played down the chances of radical changes amid pressure from transparency groups.

"It has turned out to be quite weak, but that is not necessarily a reason to water it down," said Simon Youel of Positive Money, which campaigns for a fair financial system, noting enforcement action under the rules was rare.

And Kay Swinburne, vice chair of KPMG UK's financial services practice, said that it was unlikely 'fit and proper' certification would be ditched entirely.


'LESS BUREAUCRATIC'


Regularly updating the FCA Register means significant administration costs, Hills said, adding members were still supportive of the regime's overall purpose and would await the consultation to make their case in full.

A third source at a global bank said reforms should focus on making the regime less bureaucratic, including the hiring process for certified employees, but added they were strongly in favour of a system that had been emulated overseas.

Bureaucratic hold-ups have led to delays of up to four months on authorising senior hires, a separate source said.

The proportion of approvals by the BoE within the 90-day statutory time limit dropped to 69% last year, down from 99% in 2019, data from bank lobby group TheCityUK collated from regulatory reports showed.

The proportion of on-time approvals by the FCA dropped to 86% from 99% over the same period, the data showed.

The FCA said it has made significant progress, reducing its pending case load by half. "We will meet our targets by March this year," it added.

The finance ministry referred to Griffith's comments in parliament. The BoE, which has had around 10 mostly ongoing SM&CR investigations, declined to comment.

Britain introduced the accountability rules in 2016 in response to public anger that so few individuals were punished over taxpayers having to bail out banks in the 2007-2008 financial crisis.

Regulators sought to reassure that the rules would not be used to put "heads on sticks" and discourage people from taking on senior roles. Head hunters say it is now only cited by those joining the banking sector from outside.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×