UK financial watchdog rules set up to oversee bank bosses will also cover firms offering credit, costing them £550mA regulatory regime intended to crack down on the behaviour of bank bosses is to be extended to 47,000 firms including dentists, gyms and tool hire companies that offer credit to customers. The Financial Conduct Authority estimated that the new regime would cost firms £550m, with up to £190m of ongoing costs for the firms involved. It had been expected that the additional firms would be covered by the senior managers and certification regime (SMCR) from 2018, although the FCA’s consultation document does not indicate if this is still the timetable. The SMCR came into force for almost 900 banks and building societies in March 2016 and was intended to tackle the fact that no bank bosses were held to account when their firms collapsed in 2008. This certification must now happen annually, whereas under the previous system the FCA approved individuals only once, unless they moved roles.

Source: The Guardian July 26, 2017 17:38 UTC