The FCA and PRA have each published a policy statement containing feedback to consultations on proposed technical rule changes relating to the Senior Managers Regime, together with consequential amendments to associated forms.  The policy statements confirm the final policy (in the form of the FCA Handbook and PRA Rulebook instruments) and final versions of the forms.

The policy statements are:

The final rules and forms reflect HM Treasury’s proposal to remove the requirement for firms to report known and suspected breaches of conduct rules, as set out under section 64B(5) of the Financial Services and Markets Act 2000 (FSMA).  This requirement, together with the presumption of responsibility in sections 66B(5) and (6) of FSMA, will no longer enter into force on 7 March 2016.  The relevant rules will be suspended with effect from 7 March 2016 and the intention is that, subject to Parliamentary approval, section 64B(5) of FSMA may be formally repealed and the presumption of responsibility may be replaced with a statutory duty of responsibility, during the course of 2016 under the Bank of England and Financial Services Bill 2015-16.

In PS16/6, the FCA:

  • Summarises feedback from its January 2016 consultation on proposed consequential changes to the Senior Managers Regime (CP16/1) and confirms the final rules and forms.
  • Finalises some technical amendments to Annex 1 to Chapter 1 of the Senior Management Arrangements, Systems and Controls sourcebook (SYSC).  The amendments address how SYSC applies to foreign branches. 

In PS9/16, the PRA:

  • Provides feedback on responses to its January 2016 consultation on strengthening accountability in banking: amendments to notification rules and forms (CP1/16).
  • Sets out the amended definition of the term “significant risk taker” in the Certification Part of the PRA Rulebook, as proposed in its August 2015 occasional consultation paper (CP29/15).

The final rules and revised forms come into force on 7 March 2016.