PA’s David Biggin, a financial services regulation expert, is quoted in an article about the Senior Managers Regime – a new regulation put in place today.
The regime means top employees at banks, building societies, credit unions and Prudential Regulation Authority regulated investment firms will need to adopt “statements of responsibility”, holding most senior executives at their institution accountable for misconduct.
David says that the new regime may make it harder to recruit: “The new rules are very broad in scope, covering all staff who have a role which is risk taking, customer facing or contains significant responsibility. For prospective senior bankers and non-executive directors, who will be caught by the regimes, it will add a layer of anxiety to their roles that some may feel is a step too far.”
David goes on to add: “For junior candidates, the changes could make the industry even less attractive.”