Bianca Venkata heralds the coming into force of the new senior management regime
On 7 March 2016 the new senior management regime (the regime) will come into force. The regime introduces three key requirements which aim to hold senior managers to account. On 15 October 2015 HM Treasury announced that it was removing the controversial “reverse burden of proof” from the regime. This is despite the fact that the reverse burden of proof was strongly recommended by the Parliamentary Commission on Banking Standards (PCBS) and supported by the government, Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
This article considers three key requirements of the regime and the impact of the removal of the reverse burden of proof.
Background
The financial crisis in 2008 fundamentally changed the perception of the financial sector. The global credit crunch resulted in the near collapse of the banking system. The government invested £37bn to bail out Royal Bank of Scotland, Lloyds TSB, and HBOS. In December 2008, the FTSE 100 closed down by 31.3%, the biggest annual fall in the FTSE’s history. A month later, interest
