2017年-FCA英国金融行为监管局_accountability_regime_banking_sector_5页_283kb

Summary of Regulator Assessment: Qualifying Regulatory Provisions

Overview

The Accountability Regime for the banking sector is a regulatory reform introduced by the Financial Conduct Authority (FCA). It was established in response to the 2008-09 financial crisis, following the recommendations of the Parliamentary Commission on Banking Standards (PCBS) and the Financial Services (Banking Reform) Act 2013 (the Act). The regime aims to improve accountability, transparency, and professional standards in the UK banking sector by introducing new frameworks for individual responsibility and conduct.

Key Regulatory Changes

• Senior Managers Regime (SMR): Replaces the Approved Persons Regime (APR), focusing accountability on a narrower group of senior individuals. This includes:
  • Allocating responsibilities to senior individuals.
  • Regularly vetting their fitness and propriety.
• Certification Regime (CP Regime): Applies to employees who could pose a risk of significant harm to the firm or its customers. It requires firms to assess the fitness and propriety of these individuals.
• Conduct Rules: Replace the previous Statements of Principle and Code of Conduct, applying to a broader range of employees than those subject to regulatory approval.

Affected Entities

The new regime affects the following types of institutions in the UK:

• UK Banks and Investment Firms: 160 in total.
• Building Societies: 45 in total.
• Credit Unions: 523 in total.

These include both UK branches of overseas banks.

Cost and Benefit Analysis

Total Estimated Costs

• One-off Compliance Costs: £260.62 million
• Ongoing Compliance Costs: £26.75 million per annum
• Net Cost to Business: £55.1 million
• Business Net Present Value (NPV): -£490.9 million
• BIT Score: £275.5 million

Cost Breakdown

Key Cost Drivers

• Migration to SMR: Involves understanding the new regime, developing guidance, and revising organisational structures.
• Criminal Offence and Presumption of Responsibility: Requires recording and retaining additional evidence, which incurs one-off and ongoing costs.
• Statement of Responsibility (SoR): Involves developing SoRs, responsibilities matrices, and handover certificates.
• Pre-approval: Requires updating internal policies and processes for the SMF pre-approval application.
• Certified Persons Regime (CP Regime): Involves creating guidance, changing organisational structures, and migrating functions and personnel.
• Continuing Fitness and Propriety: May require new systems or processes for ongoing checks and DBS8 checks for senior managers.
• Conduct Monitoring and Reporting: Involves setting up or updating systems to record and report breaches of conduct, and ongoing reporting processes.

Additional Information for BIT Score Validation

• The Accountability Regime reflects the PCBS recommendations and the amendments under the Act to FSMA.
• The BIT score of £275.5 million is calculated based on the net present value of the costs and benefits.
• The FCA does not attempt to split the costs between itself and the HM Treasury (HMT) as a retrospective measure, but it acknowledges that future implementation might involve cost-sharing.

Conclusion

The Accountability Regime represents a significant shift in the regulatory landscape for the UK banking sector, aiming to enhance accountability and restore public trust. While it introduces substantial one-off and ongoing compliance costs, it also provides a clearer framework for holding individuals responsible for their actions, which is expected to have long-term benefits for the sector's governance and reputation.