Clifford Chance

It's in the trees! It's coming! - The new Senior Managers and Certification Regimes receive Royal Assent - 22 January 2014

6 February 2014

The close of 2013 saw proposed changes to the way individuals in the banking sector are supervised move a step closer as the Financial Services (Banking Reform) Bill completed its eventful parliamentary journey.

The Bill received royal assent on 18 December and became the Financial Services (Banking Reform) Act ("the Act"). Amongst the important changes to the regulatory landscape for banks and certain investment firms will be the introduction of new "Senior Managers" and "Certification" regimes, which will bring a wider range of individuals than ever before within the ambit of a stricter supervisory regime.

Although the legislative process has been completed, the majority of the Act has yet to come into force (including the new criminal offence).  Many aspects of the new Senior Managers and Certification regimes have been left to be determined by the Financial Conduct Authority ("FCA") and Prudential Regulation Authority ("PRA") through their rule making powers.  They propose to consult during the course of 2014, with the new regimes expected to come into force during 2015.

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