PRA to Strengthen Individual Accountability
Recurring Theme: Individual Accountability
Earlier this month, the Prudential Regulation Authority (PRA) published a supervisory statement outlining the agency’s stricter approach towards individual accountability in instances of wrongdoing in the financial services industry. The Supervisory Statement SS28/15, Strengthening Individual Accountability in Banking, applies to covered entities under the Financial Services and Markets Act (FSMA) and various regulatory frameworks, including the Senior Managers Regime (SMR), Certification Regime and Conduct Rules.
The statement raises the standards for assessing individual qualifications, responsibilities and conduct. The PRA’s actions align with the focus of fellow United Kingdom (UK) regulators as well as other global regulators, on the need to hold individuals, as opposed to corporations, more accountable for misconduct.
PRA Press Release: