Background
This joint Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) consultation paper (CP) follows CP14/14 ‘Strengthening accountability in banking: a new regulatory framework for individuals’, which was published in July 2014 and proposed a new accountability framework for individuals working for UK banks, building societies, credit unions and PRA-designated investment firms (‘relevant firms’).
The proposals in this CP, together with those set out in CP14/14, reflect the recommendations of the Parliamentary Commission on Banking Standards (‘PCBS’) and implement changes required by the amendments which the Financial Services (Banking Reform) Act 2013 (‘the Act’) made to the Financial Services and Markets Act 2000 (FSMA).
This CP should be considered in the context of the substantive policy proposals consulted on in CP14/14 and assumes that they are unchanged. The proposals in this CP should not be interpreted as a response to feedback to the July consultation. Changes to the substantive proposals in CP14/14 as a result of consultation feedback may trigger changes to the proposals in this CP as a consequence.
Summary of the proposals covered by this CP
This CP consults on the PRA’s and FCA’s proposed transitional arrangements for relevant firms and individuals, the application and notification forms necessary for implementing the new Senior Managers and Certification regimes, and consequential changes to the PRA Rulebook/Handbook and FCA Handbook.
Please note: the proposals that the regulators are consulting on do not currently apply to UK branches of relevant firms that are headquartered overseas (‘incoming branches’). At the time of publication, HM Treasury is consulting on draft legislation to bring incoming branches of relevant firms into the statutory scope of the proposed accountability regime. Subject to the outcome the HM Treasury’s consultation, the PRA and FCA will consult on the detailed application of the proposed regimes to incoming branches of relevant firms (including transitional arrangements, forms and consequential changes).
The same CP is available on the FCA’s website with the reference **CP14/32.
Responses
The consultation closes on Friday 27 February 2015.
Consultation Paper 28/14CP28/14 was updated at 2pm on Friday 19 December to include the complete set of proposed FCA rules.