The Financial Conduct Authority will look to improve the Senior Managers’ and Certification Regime which applies to banks building societies.
The regime, which came into force in March, means firms are legally required to assess whether senior managers are fit and proper on an annual basis.
The FCA will consult on extending the conduct rules to non-executive directors of banks and insurers and providing ‘duty of responsibility’ guidance for senior managers.
So far the FCA said it has seen evidence of overlapping or unclear allocation of responsibilities.
For example firms are sharing responsibility with junior members of staff, obscuring who is responsible which is going against the intent of the regulator.
Andrew Bailey, chief executive of the FCA, said: “Six months on and, in a great many cases, firms have made a substantial effort to get this right and embrace the importance of the key principles underlying the Senior Managers and Certification Regime, namely responsibility and accountability.
“Knowing who is responsible for what is critical for firms and regulators and we have seen genuine engagement on this from the board down.
“Generally, we have observed that firms are taking their responsibilities seriously and have broadly got the regime right. But we recognise culture change takes time and there is still more to do. So we have to keep a watchful eye on the progress firms are making.”
