Treasury has made orders bringing into force certain provisions of banking reform legislation:
- the Financial Services (Banking Reform) Act 2013 (Commencement No. 11) Order 2016 brings into force from 10 May the definition of “misconduct” for the purposes of regulatory action under section 66 of the Financial Services and Markets Act (FSMA); and
- the Bank of England and Financial Services Act 2016 (Commencement No. 1) Regulations 2016 bring into force on the same day a further amendment to the FSMA provision to address the controversial burden of proof on senior managers. The effect of the provision is that a senior manager will not be guilty of misconduct under Condition C in section 66A(5) or 66B(5) of FSMA unless FCA or PRA can prove that that senior manager did not take reasonable steps to avoid the contravention of a requirement by the authorised person occurring or continuing.