new regime was
The Accountability Regime clarifies the way that regulators hold senior executives of banks and other financial institutions to account.
According to the FCA and PRA, behaviour and culture within banks played a major role in the 2008 financial crisis.
At the time, individual accountability was often unclear or confused which undermined public trust in both the banking system and in the regulatory response.
This included miss-selling Payment Protection Insurance and the attempted manipulation of LIBOR.
To resolve this issue, in July 2014 the FCA and PRA published a joint consultation paper highlighting new changes to compliance regulations.
To effectively regulate the proposed changes, it was agreed that individuals will be held accountable for the roles they perform.
Organisations required to meet these regulations are UK banks, building societies, credit unions and investment firms.
Proposals reflected the recommendations of the Parliamentary Commission on Banking Standards and included three key elements; the Senior Managers’ Regime, the Certification Regime and Conduct Rules.
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