The FCA has published Consultation Paper 15/5: Approach to non-executive directors in banking and Solvency II firms & Application of the presumption of responsibility to senior managers in banking firms (CP15/5).
In CP15/5 the PRA and FCA set out their revised approach to independent non-executive directors (NEDs) in UK banks, building societies, credit unions and PRA-designated investment firms and Solvency II firms.
Under the revised approach, the PRA and FCA will only make the following NEDs subject to approval and inclusion in the senior managers regime (SMR) for relevant authorised persons:
- chairman;
- chair of the risk committee;
- chair of the audit committee;
- chair of the remuneration committee;
- chair of the nomination committee; and
- senior independent director.
In CP15/5 there is also a consultation on:
- the approach to NEDs in the approval and individual accountability regime for Solvency II firms, which the PRA and FCA propose to align to the scope of the SMR for relevant authorised persons as far as NED functions are concerned (chapter 3);
- the PRA’s proposed fitness and propriety and notification requirements for those NEDs in relevant authorised persons who will not be in scope of the SMR (chapter 4);
- a draft PRA Supervisory Statement clarifying the role and responsibilities of NEDs in scope of the SMR and how the PRA intends to apply sections 66B (5) and (6) of the Financial Services and Markets Act 2000 (collectively the ‘presumption of responsibility’) (chapters 2 and 5 and Appendix 2); and
- FCA guidance on the role and responsibilities of NEDs (chapters 2 and 3 and Appendix 3). The FCA will also consult on guidance on how the presumption of responsibility will apply to all senior managers shortly.
The deadline for comments on CP15/5 is 27 April 2015.
View FCA sets out approach to non-executive directors and the senior managers regime, 23 February 2015
