Regulatory Alerts2016-09-25
Added · Updated
Guidance on the duty of responsibility: final amendments to the Decision Procedure and Penalties Manual
The Financial Conduct Authority amends the Decision Procedure and Penalties Manual to specify enforcement of the duty of responsibility under section 66A(5) of the Financial Services and Markets Act 2000. The amendments establish that an SMF manager may be subject to action if their firm contravenes a regulatory requirement, the manager was responsible for the relevant activities, and they failed to take reasonable steps to avoid the contravention. The guidance details considerations for determining responsibility and reasonable steps, including the manager's role, the firm's operations, and specific conduct expectations. These changes apply to Senior Managers at banks and other firms covered by the Senior Managers Regime and come into force on 3 May 2017.