The Financial Conduct Authority will take a firm’s size into account as it widens the scope of its Senior Managers Regime, its chief executive Andrew Bailey reassured today.
Bailey (pictured), who was in a press briefing after the regulator’s annual public meeting, sent out the message that a one man advice firm won’t be expected to have the same standards as an international bank.
Bailey said: “What’s important [is] there is proportionality.
“We’re taking it from the banks to the whole world of FCA firms which is a large number, so getting the proportionality right… to one person firms is critical.
“You wouldn’t load on the Senior Managers Regime you apply to international banks to a one person firm and it has taken up of a lot of time to get that right.
“Frankly when we do publish everyone will be keenly watching that point.”
The Senior Managers Regime, which introduced more stringent accountability of managers, came into force on 7 March 2017 and affects banks, building societies, credit unions and insurers.
Next year its scope will widen to all FCA regulated firms.
Earlier Bailey confirmed the regulator will amalgamate two HBOS investigations into one – the £245m fraud that took place at its Reading branch and a probe into bosses at the helm of the failed mortgage lender.
He went on to say: “One of the things that you conclude from those old cases is that they did not have senior responsibility of managers at the heart of it.”