HM Treasury has published a letter sent by George Osborne, Chancellor of the Exchequer, to Dr Mark Carney, Bank of England Governor, and a letter sent by Mr Osborne to John Griffith-Jones, FCA Chairman. The letters relate to HM Treasury’s proposal to extend the senior managers and certification regime (SM&CR) to UK branches of foreign banks that was announced in Mr Osborne’s Mansion House speech.
In the letters, Mr Osborne states that HM Treasury intends to publish this autumn a Consultation Paper on extending the SM&CR to the UK branches of all non-UK banks and investment firms that are prudentially regulated by the PRA. The consultation will consider how the regime should be applied in a proportionate manner to these branches, particularly as some undertake very small-scale or narrow activities in the UK.
The FCA has also published a letter from Mr Griffith-Jones to Mr Osborne welcoming the proposal. In the letter, Mr Griffith-Jones states that the FCA intends to publish its detailed proposals for the SM&C relating to both UK institutions and UK branches of foreign banks in a joint consultation with the PRA later in 2014.