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Legal and Conduct Risk in the Financial Markets, 3rd Edition by McCormick, Roger; Stears, Chris (22nd March 2018)

Part IV Regulatory and Other Developments in the UK 2010‒2016, 15 Individual Accountability

Roger Mccormick, Chris Stears

From: Legal and Conduct Risk in the Financial Markets (3rd Edition)

Roger McCormick, Chris Stears

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2015. All Rights Reserved.date: 11 December 2018

Subject(s):
Banking — Financial regulation — UK Financial Conduct Authority (FCA)

A defining characteristic of post-financial crisis regulatory reforms is the focus on reinforcing individual accountability. The reforms aim to bridge a perceived ‘evidentiary gap’ in situations where there is a case for placing personal responsibility on individuals within financial institutions in relation to misconduct manifested within their area of responsibility, but due to the structural and operational complexities of the institution, an enforcement action/prosecution is not likely to succeed. This chapter summarises the most salient of ‘individual accountability’-focused reforms, either under consideration or fully/partially implemented. This includes a new, enhanced, framework for the assessment of individuals’ fitness and propriety and the internal (and/or regulatory) approval of them to perform certain roles; subtle changes to the enforcement approach of the Financial Conduct Authority; the introduction of new criminal offences for misconduct in senior office and the facilitation of financial crimes; and the reinforcement of whistleblowing procedures within firms.

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