Senior executives in insurance will be held personally
responsible for misconduct, as part of plans to extend the Senior
Managers and Certification Regime.
The new rules will give consumers peace of mind that those at the
top of the big insurers will be held personally responsible for
any wrongdoing. The rules will also ensure that a code of conduct
is set out for all staff, and that employees who do a job where
they could do significant harm to consumers, or to the UK’s
financial stability, are approved annually by their firm.
, the Economic Secretary to the
Treasury and City Minister said:
Britain’s first-class regulation is one of many reasons our
country is so attractive for financial services investment. The
Senior Managers and Certification Regime plays a big part in
this, ensuring that those at the top display the behaviours and
values that the British people expect.
The extension of the Regime to insurance firms will ensure
individual accountability for misconduct at the most senior
levels within the insurance sector.
The Senior Managers and Certification Regime, first introduced
for banks and building societies in 2016, will be extended to
include insurance firms from 10 December 2018. Currently the
Regime applies to banks, building societies, credit unions,
investment firms and UK branches of foreign banks. The government
previously legislated to extend the Regime across all financial
services firms. The extension into insurance is the start of
this.
The Financial Conduct Authority (FCA) are also consulting on how
the Regime will apply when it is extended to include smaller
firms regulated only by the FCA (also known as solo-regulated
firms).
