The FCA and PRA have published the following documents relating to the senior managers’ regime for UK branches of foreign banks (incoming branches) following their joint consultation paper in March 2015:
- FCA Policy Statement 15/30: Strengthening accountability in banking: UK branches of foreign banks (final rules) (PS15/30); and
- PRA Policy Statement 29/15: Strengthening individual accountability in banking: UK branches of non-EEA banks (PS29/15), Updated Supervisory Statement 28/15: Strengthening individual accountability in banking (SS28/15) and Policy Statement 30/15: Amendments to various forms (PS30/15).
In PS15/30 the FCA follows up on the feedback it provided in August 2015 (Feedback Statement 15/3: Strengthening accountability in banking: UK branches of foreign banks – Feedback on ***FCA CP15/10 / PRA CP9/15) and publishes its final rules for the new accountability framework for individuals working in incoming branches.
In setting out its final rules, the FCA notes that it has made some minor changes to the near-final rules set out in its August Feedback Statement. At the time the FCA was unable to publish final rules due to the fact that the legislation extending the senior managers’ regime to incoming branches had not come into force.
The FCA also notes that in light of the feedback it received to its consultation on extending the certification regime to wholesale market activities (CP15/22), which closed for comments after the near-final rules were published, it has made changes to the final rules to clarify the territorial scope of the certification regime and conduct rules. This is done as in interim measure to address concerns that the rules proposed in CP15/22 could apply widely in practice. The FCA expects to publish a policy statement for CP15/22, including its final rules, in early 2016. If these amend the final rules for incoming branches, the FCA will set this out clearly in this policy statement.
In PS29/15 the PRA sets out its final rules following, similarly to the FCA, the publication of its near-final rules in August. The PRA notes that it has made a number of small corrective changes to certain rules, in particular, the grandfathering table. An updated version of the grandfathering table is set out in Table 1 of PS29/15. Correspondingly, the PRA has also published an updated version of SS28/15. The updated SS28/15 includes a number of additional paragraphs (paragraphs 2.17 to 2.19 and 2.28) setting out the PRA’s expectations of how non-EEA branches should comply with certain aspects of the senior managers’ regime.
Lastly, in PS30/15, the PRA summarises the feedback received to a joint consultation with the FCA on proposed amendments to a series of forms used by firms and individuals when seeking regulatory approval for certain roles and transactions, and confirms the final policy and forms.
View PS15/30: Strengthening accountability in banking: UK branches of foreign banks (final rules), 16 December 2015
View Strengthening individual accountability in banking: UK branches of non-EEA banks – PS29/15, 16 December 2015
View Amendments to Various Forms – PS30/15, 16 December 2015