UK regulators propose scaling back checks on finance staff
The PRA and FCA say their proposed changes would save firms about £2 billion over 10 years while keeping senior executives accountable.
Key takeaways
- The PRA and FCA estimate the proposals would save firms about £2 billion over 10 years.
- Around 139,000 people below senior manager level would leave the annual certification regime.
- Consultations are open until 22 January, with policy expected to follow in 2027.
The Prudential Regulation Authority and Financial Conduct Authority have proposed changes to the Senior Managers and Certification Regime, estimating they would save firms about £2 billion over 10 years. The proposals would reduce the number of roles needing enhanced regulatory checks.
Around 139,000 people below senior manager level would no longer face annual certification checks or appear on the Financial Services Register under the plan. Some roles, including chief actuaries and chairs of risk and audit committees, would shift from regulator pre-approval to firms notifying regulators of appointments.
Chief executives, chief financial officers and some other senior roles would still need regulator pre-approval and fit-and-proper checks before appointment. Firms would remain responsible for staff competence and conduct, while regulators could require pre-approval for other roles in high-risk cases.
The proposals would also raise the threshold for reporting conduct breaches by most staff below senior manager level. The regulators say high standards of individual accountability would remain in place. Consultations are open until 22 January, and policy is expected to follow in 2027.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
