More than 70,000 City managers could be held personally responsible for misconduct under the FCA’s new accountability rules

The number of senior managers in financial services firms who could be held personally responsible for misconduct has increased to 72,000, according to new research from law firm Cleveland & Co.

This comes after City watchdog the Financial Conduct Authority (FCA) announced it would broaden the scope of the Senior Managers and Certification Regime (SMCR) from covering just banks to the whole of the financial services industry, in an effort to increase accountability.

The number of people who could potentially be penalised under the extended SMCR could rise more than 20-fold, from the 3,159 who fell under the regime last year, according to FCA data seen by Cleveland & Co.

“The scale of the increase highlights the size of the task that many companies face,” said Emma Cleveland, managing director of Cleveland & Co.

 

Source: City A.M.

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