Post-financial crisis, one of the most common public
reactions was anger that no individuals were held personally
accountable for what was, in some cases, blatantly reckless
risk-taking and outright misconduct.
Fining firms is no longer enough, so an incoming UK
regulation aimed at strengthening personal accountability makes
Enter the Senior Managers Regime, under which bankers found
responsible for failings at a financial institution as a result
of reckless decision-making can, at the most extreme end of the
spectrum, face up to seven years in jail on criminal
The brainchild of the parliamentary commission on banking
standards set up after the 2012 Libor-rigging scandal, the
rules take effect on March 8. They will apply to anyone acting
as chairman, senior independent director, or chair of risk,
audit, remuneration and nomination committees, with the
likelihood of further extension.
Against this backdrop, IFLR’s quick poll this
month asks readers how effective the regulation will be at
preventing the behaviour that caused the last crisis.
Cast your vote on the right-hand side of IFLR’s
homepage. The results will be published in the next issue
of our magazine.
If you would like to arrange an off-the-record chat to
explain your view, email firstname.lastname@example.org.
All votes and comments are anonymous.
Results of past IFLR polls
Helping panda bonds grow
Fears over US auto securitisation
CMU’s greatest impact