UK to relax post-2008 rules that hold City bosses accountable for wrongdoing
Summary
The UK plans to relax financial rules created after the 2008 crisis that hold bank and financial firm leaders responsible for bad behavior. Under new proposals, only top executives like CEOs and CFOs need to prove yearly that they act properly, reducing extra checks on about 140,000 managers. The changes will also reduce reporting requirements for minor employee misconduct to focus regulator attention on serious issues.Key Facts
- The Bank of England and Financial Conduct Authority (FCA) are behind the new proposals.
- Only the most senior executives will need to show they are “fit and proper” each year and before starting new jobs.
- Around 140,000 managers will no longer face extra checks on their conduct.
- Reporting of “lower-level misconduct” like being late or minor mistakes will not need to be sent to regulators.
- Firms must still report serious misconduct, final warnings, or firings to the authorities.
- These rules were created after the 2008 banking crash to make bank leaders more accountable.
- The changes aim to make UK financial firms more competitive globally.
- The regulators estimate the changes will save businesses about £2 billion over 10 years and cut regulator costs significantly.
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