Two new statutory instruments came into force this week on 10 May 2016 relating to misconduct by approved persons, as set out in sections 66A and 66B of FSMA. The original sections 66A and 66B, as introduced by section 32(2) of the Financial Services (Banking Reform) Act 2013, have been amended by Section 25 of the Bank of England and Financial Services Act 2016 to reverse the presumption of responsibility as originally enacted. Prior to the amendment, senior managers were to be deemed to be guilty of misconduct if there had been a breach of any regulatory requirement in an area for which they were responsible unless they could prove that they had taken reasonable steps to avoid the breach happening. Section 25 now provides that no senior manager will be guilty of misconduct unless the FCA or the PRA, as applicable, can prove that the senior manager did not take reasonable steps to avoid the breach occurring or continuing.