On 3 July, HM Treasury published for consultation its proposals on “Sanctions for the directors of failed banks“, requesting responses by 30 September 2012

The consultation paper seeks comments on whether the Financial Services Bill should introduce a “rebuttable presumption” that the director of a failed bank was not suitable to be approved by the regulator to hold a position as a senior executive in a bank.  The paper does not attempt to define the situations in which a bank would be considered to have “failed”.  The Government also asks whether there should be criminal sanctions for serious misconduct in the management of a bank, whether through the imposition of strict liability, or through new offences of recklessness, negligence or incompetence. 

Read more on the Herbert Smith Financial Services Regulation notes.


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