The treasury is further softening its stance toward the financial industry as it dilutes part of the new regime that is intended to make top bank bosses more accountable. Senior managers will face the “duty of responsibility” which will only require them to take the appropriate steps to prevent a regulatory breach instead of the previously proposed “reversed burden of proof” which would have forced them to prove they did the correct thing.
The new regime will be introduced in March 2016 and concerns banks, building societies, credit unions and some investment firms and will extend to other financial firms by 2018. These changes quickly followed the announcement by the Prudential Regulation Authority of the next steps in the proposal to separate investment banking operations from the retail business.
These measures prove that concerns raised by UK banks such as HSBC – which is considering whether it will remain in the UK – are taken into account by the government.
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