Blog
Press Round-Up: Regulatory and Professional Discipline – May 2026
Jack Garden
3 February 2016
‘The Senior Managers’ Regime: the end of the ‘regulate/de-regulate’ cycle?
In recent times, the regulatory spotlight has been focussed strongly on the UK’s financial industry. The global financial crisis in 2008 not only caused turmoil in the markets and the world economy; it also led to many questions about regulation and accountability. Questions of who was responsible within banks; why did the regulators not step in; and how can such an event be prevented in the future were aired frequently.
This article was first published in the Association of Regulatory & Disciplinary Lawyers Winter 2015/2016 Bulletin, and has been republished with the kind permission of the copyright owner.
3 February 2016
Contracts for difference: FCA issues open letter re compliance with financial crime prevention procedures
Following a review of procedures for taking on new clients in a sample of ten firms that offer Contracts for Difference (CFD products), the FCA issued an open letter - “Dear CEO letter” - identifying several concerns its wishes to highlight across the industry. Clarifying the scope of the review, the FCA specified that Contracts for difference, Spread bets and ‘Rolling Spot’ FX are all designated as a type of ‘CFD’ under the Handbook's Glossary of definitions, which in turn are a type of derivative. Ten firms, of varying sizes, were subject to the review which examined:
1 February 2016
FCA is to consult over whether the head of legal role falls within the Senior Managers’ Regime
The FCA this week acknowledged that there is considerable uncertainty as to whether an individual in charge of a firm’s legal function requires approval under the Senior Managers’ Regime. In order to clarify its position on this, it intends to consult. It has, however, provided reassurance to firms during the consultation process: firms which have sought to make decisions in good faith as to whether or not approval is needed will not need to change their approach, pending the outcome of the consultation.
19 January 2016
The PRA’s disapproval of a short-termist approach
The implications of adopting a “short-termism” approach for company decision makers have been highlighted in the PRA’s decision to prohibit two executives from the Co-Operative group.
5 January 2016
Financial crime: compliance challenges for 2016 and beyond
Notwithstanding George Osborne’s indication that he wants to work with financial institutions, we anticipate that compliance and anti-money laundering concerns will grow ever more important for the financial services industry in 2016. In the last year we have seen the FCA publicly committing to pursuing more cases against individuals and the announcement of the Senior Managers Regime which will come into force in March 2016 with the aim of making it easier to hold senior management to account (see our earlier blog). Financial crime and compliance looks set to remain firmly on the agenda.
