COCON 2.1.1 R 07/03/2016 RP. bonuses) in banks, building … <> The FCA has an overarching strategic objective of ensuring the relevant markets function well. The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have today published the final rules confirming the approach to improving individual accountability in the banking sector. The final rules cover the Senior Managers Regime; the Certification Regime; and new Conduct Rules. %PDF-1.5 2. The final rules cover the Senior Managers Regime; the Certification Regime; and new Conduct Rules. New conduct rules will add further momentum to improving standards across the industry.". Working with us via bespoke consultancy, learning, e-learning and regulatory solutions. 38B Drumsheugh Gardens, Contact us by web chat, email, phone or post: See the latest news stories, speeches, statements, press releases and warnings. In publishing the final rules, we are providing information needed by firms as they make progress with their preparations for the new regime. We want consumers to understand the FCA’s expectations around culture in firms and feel able to speak up when standards aren’t met. This was followed by legislation in the Banking Reform Act 2013 to replace the Approved Persons Regime for banks, building societies, credit unions and PRA-designated investment firms with a new regulatory framework for individuals. Rule 3: You must be open and cooperative with the FCA, the PRA and other regulators. Today’s publication follows joint FCA-PRA final rules on variable remuneration (e.g. In particular: The FCA is today also consulting on amendments to the rules in regard to the certification of individuals involved in wholesale activity, such as traders. London The UK's Prudential Regulatory Authority [PRA] and Financial Conduct Authority [FCA] are introducing new Individual Conduct Rules, which will cover the great majority of individuals working within UK banking. COCON 2.1.4 R 07/03/2016 RP. 4 0 obj An ethical culture can be more powerful than one based solely on financial incentives. Want to find out more about the Chartered Banker 2025 Foundation, then please get in touch. If you have a question about our professional qualifications or membership, please get in touch with our Membership Engagement Team. The FCA recognises that a senior conduct rules staff member will have to exercise their own judgement in deciding how issues are dealt with and sometimes that judgement will, with the benefit of hindsight, be shown to have been wrong. Implementing the new regulatory framework will be challenging for many organisations, not least in terms of meeting regulators' expectations that this should take take account of the particular roles that individuals carry out. All rights reserved. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/Annots[ 19 0 R] /MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 1>> endobj The UK's Prudential Regulatory Authority [PRA] and Financial Conduct Authority [FCA] are introducing new Individual Conduct Rules, which will cover the great majority of individuals working within UK banking. 3 0 obj The change is designed to expand the certification regime to ensure that individuals working in wholesale markets in relevant firms who could pose significant harm to the firm or its customers are subject to the new accountability rules.