Financial Regulatory Forum

UK managers, traders to face greater scrutiny – regulator FSA

July 27, 2009

LONDON, July 27 (Reuters) – The UK financial services regulator confirmed on Monday that senior managers and traders could face greater scrutiny than in the past, under an extension to its existing rules.

The Financial Services Authority (FSA) is widening the definition of ‘approved persons’ who could face checks and interviews to include anyone who exerts ‘significant influence’ at companies.

This will include heads of holding companies whose decisions are taken into account by the regulated firm and certain proprietary traders, who trade directly on behalf of institutions rather than for clients.

Companies have a six-month transition period from August to assess who may need approval from the regulator.

The FSA also said its final decision on non-executive directors and the extent to which they should intervene in the running of companies would be made in late 2009, after it had consulted the Walker Review.

Earlier in July, the government-sponsored Walker Review published a list of recommendations for changes in the way banks should be run.

Blame for regulatory failures that contributed to the credit crunch has reached the door of the FSA itself, with Britain’s opposition Conservatives saying they would abolish the watchdog if they win the next election (Reporting by Rosalba O’Brien)

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