Representatives of the Financial Conduct Authority (FCA), Prudential Regulation Authority (PRA) and the Bank of England recently gave evidence to the House of Commons Treasury Select Committee in relation to IT failures in the financial services sector. Alison Barker (the FCA’s Director of Specialist Supervision), Lyndon Nelson (the PRA’s Executive Director of Regulatory Operations and […]

LEARN FROM OTHER PEOPLES MISTAKES – Enforcement action was taken by the FCA about 1] culture and governance; 2] operational and technological resilience; 3] financial crime and money laundering, and 4] the treatment of customers. Cases matched against the above are discussed below:- 1.Firm’s culture and governancei it is expected that individual accountability, culture and […]

The PRA, the Bank of England (BoE) and the FCA have published a joint consultation paper (FCA CP16/6 / PRA CP5/16) entitled “Complaints against the Regulators”. The consultation paper sets out changes to the complaints scheme to implement new legislative provisions requiring the Complaints Commissioner (CC) to produce an annual report on their investigations and […]

Summary The recent financial penalty imposed on R. Raphael & Sons Plc (“Raphaels”) by the Prudential Regulatory Authority (“PRA”) underlines the importance of having proper and formalised outsourcing arrangements in place with service providers (even where these are intra-group). Although authorised financial institutions may outsource important operational functions, the responsibility to comply with regulation will […]

The PRA and FCA have published a report containing a review into the failure of the HBOS Group. The review concludes that ultimate responsibility for the failure of HBOS rested with the board and senior management. Findings The review states that the failure of HBOS can ultimately be explained by: the board failing to instil […]

Recently, the Treasury announced plans to extend the Rules of Conduct under the Senior Managers Regime to non-executive directors (NEDs), in Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) regulated firms. The speech on 3 November 2015 by Andrew Bailey, CEO of the PRA on governance, spoke on the role of boards as being […]

Andrew Bailey, deputy governor, prudential regulation and chief executive officer, PRA, has given a speech at the Westminster Business Forum on the role of governance and boards in the prudential supervision of deposit takers, insurance firms and major investment firms. Mr Bailey outlined three of the PRA’s expectations of boards: to exercise good judgement in […]

On 3 November 2015, the PRA issued a speech given by Andrew Bailey, PRA Chief Executive and Bank of England (BoE) Deputy Governor for Prudential Regulation, on governance and the role of boards in banks, insurers and major investment firms. http://www.bankofengland.co.uk/publications/Documents/speeches/2015/speech858.pdf In his speech, Mr Bailey considers the role of boards in the broader setting […]