Trinity Knot Consulting

The FCA’s Senior Managers’ Regime is designed to partly replace the Approved Persons Regime, APER.

The new certification regime in which certain firms will be required to self-certify some of their key employees as ‘fit and proper’ and that applies to a wider range of staff than in APER.

Also new banking conduct code that apply to almost everyone in a firm.

These rules are for PRA authorised investment firms, banks and building societies. APER continues outside those sectors.

Some of the new key proposals are:

A statutory “Presumption of Responsibility” – or a ‘reversed burden of proof’.

Senior Managers will probably be held liable to enforcement action from three independent directions:

Condition A: an individual breach of the rules.

Condition B: “knowingly concerned” in a breach.

Condition C: where breach is in any event their area of responsibility.

Key Managers may also be prosecuted for a new offence ‘relating to any decision causing a financial institution to fail’ see s.36 Financial Services (Banking Reform) Act 2013 (F S (Banking Reform) Act 2013).

APER continues in other area’s, please contact Trinity if you need advice on aspects of APER or on proposed steps to ensure compliance with the new FS (Banking Reform) Act 2013.