New rules on banking misconduct published
City regulators have published final rules explaining how leading bankers will have to take responsibility for misconduct on their watch - unless they can explain what they did to stop it.
The new senior managers regime means top executives and some board members will be presumed responsible for wrongdoing committed under their auspices - removing the burden of proof on authorities to show they were to blame.
It comes two years after a parliamentary commission set out recommendations for a shake-up of the UK banking industry in the wake of the financial crisis.
It's understood that the new regime will take effect from March next year.
Final rules were published yesterday by the Prudential Regulation Authority (PRA), which is part of the Bank of England, along with the Financial Conduct Authority (FCA).
Existing legislation means the bodies can start criminal prosecutions against senior managers where they take a decision that causes a bank to fail.