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Detail of outcome
Having carefully considered the responses to the consultation, the government has decided to apply the Senior Managers and Certification Regime (SM&CR) to UK branches of foreign banks from 7 March 2016. The SM&CR will apply to UK banks, building societies, credit unions and PRA regulated investment firms from the same date. This document summarises the responses received and sets out the government’s response.
The Financial Services (Banking Reform) Act 2013 put in place the legal framework for the government’s reforms (the “Senior Managers and Certification Regime”) to strengthen the regulation of individuals who work in the UK banking sector. The Act also gave the Treasury the power to extend the reforms to cover UK branches of foreign banks and investment firms by statutory instrument and imposed an obligation to consult representative organisations and other appropriate persons.
This consultation invites responses on the attached draft order which would apply the Senior Managers and Certification Regime to UK branches of foreign credit institutions and to foreign investment firms that carry on the regulated activity of dealing in investments as principal in the UK and are regulated by the Prudential Regulation Authority (PRA).
Who should read this
Foreign banks and investment firms operating in the UK, trade associations and other representative organisations, individuals who work in foreign banks and investment firms, customers of foreign banks and investment firms.