Treasury highlighted the effective date for the new individual criminal offence of causing a financial institution to fail. The offence took effect on 7 March with the senior managers regime (SMR) and senior insurance managers regime (SIMR). An individual who is a senior manager in a UK bank, building society or PRA-regulated investment firm will commit the offence if:
- that individual agrees to the taking of a decision which causes the institution to fail;
- at the time of the decision, the individual was aware of the risk that the decision could cause the institution to fail; and
- the individual’s conduct in relation to the decision fell far below what could reasonably be expected of a senior manager in that position.
The maximum punishment for the offence is seven years’ imprisonment and an unlimited fine. (Source:Treasury highlights bank failure offence)