The FCA has published policy statement 15/29 on strengthening accountability in banking. In the policy statement the FCA sets out its amendments to the Decision Procedure and Penalties Manual (DEPP) and the Enforcement Guide (EG), to give guidance on how it will enforce the new accountability regime (including the Senior Managers Regime and the Certification Regime), and use the new powers created by the Financial Services (Banking Reform) Act 2013 (the Banking Reform Act).
Under the new regime, the Conduct Rules will replace the existing Statements of Principle and Code of Practice for Approved Persons. The Conduct Rules will apply to a much broader range of people, capturing the vast majority of staff in relevant firms. The paper explains that the FCA will enforce the Conduct Rules proportionately. When considering whether to take enforcement action against an individual, it will take account of their position and responsibilities. When enforcing the Conduct Rules, the FCA will follow a deterrence-based strategy: it will take effective and robust enforcement action across a wide range of firms and individuals.
The guidance in DEPP and EG will apply from 7 March 2016. Senior Managers will be subject to the criminal offence relating to a decision that causes a financial institution to fail for conduct that takes place on or after 7 March 2016.
Individuals subject to either the Senior Managers Regime or the Certification Regime will be subject to the Conduct Rules from 7 March 2016. Firms will need to make sure that their staff are aware of and understand the Conduct Rules before they come into force.