Getting Personal – The FSA´s Perspective on Senior Management Responsibility - Securities and Banking Update May 2005

The importance of senior management responsibility is already evident in all aspects of FSA regulation. But as the regulator’s increased focus on individual responsibility starts to bite, we review areas for potential compliance failings and the serious consequences for senior management.

February 2005 saw the 10th anniversary of one of the most infamous events in banking history. The story of how one man’s actions ultimately led to the collapse of one of the most respected institutions in international finance is well known to all. In 1997, prompted by perceived failings in the regulatory system, the Chancellor announced his plans for the establishment of a single financial services regulator in the UK. Consequently much has changed in the regulatory sphere, particularly with regard to the responsibilities of senior management. Ten years on, as the FSA embarks upon its new round of Arrow visits we examine the issues surrounding the role of senior management in running firms, and