The FCA has published Handbook Notice 58 which reflects the changes introduced to the Handbook by a number of instruments made by the FCA board on 26 July 2018 and 27 September 2018 including the Individual Accountability (Dual-Regulated Firms) Instrument 2018 (FCA 2018/45).
This instrument makes changes to the Handbook to enhance and embed a culture of individual accountability and personal responsibility within firms by reinforcing governance requirements, encouraging clear articulation by firms of their allocations of responsibilities and establishing fitness and propriety as a responsibility of each firm. It makes a number of changes to the sourcebooks in the Handbook, including:
- Senior Management Arrangements, Systems and Controls (SYSC);
- Supervision manual (SUP); and
- Fit and Proper test for Approved Persons (FIT), which is also renamed the Fit and Proper test for Employees and Senior Personnel sourcebook.
The FCA’s Policy Statements PS18/14 and PS18/15 contained its near-final rules and feedback to previous accountability consultations. The FCA indicates that there have been some minor changes to the versions of the new rules published in the Policy Statements, particularly in the transitional provisions. These changes reflect the fact that statutory instruments made by HM Treasury now provide for some matters that in the near-final rules were dealt with by FCA rules. However, the FCA states that the changes to the near-final rules do not alter its underlying policy position as set out in its Policy Statements.
The instrument has a staggered implementation date, with most rules coming into force on 10 December 2018, but some others coming into force on 28 September 2018, 1 November 2018 and 10 December 2019.