FCA: Strengthening accountability in banking and insurance: regulatory references

08 October 2015

FCA in partnership with the Prudential Regulation Authority (PRA), are consulting on proposals for regulatory references as part of the wider package of reforms that aim to improve accountability in banks and insurers.

Employment references that pass between firms when individuals move roles are an important tool for employers in assuring themselves that they are hiring the right people. In this consultation, the Financial Conduct Authority (FCA) and the PRA are proposing changes to the way firms seek and provide references for candidates of certain roles.

The FCA and the PRA originally consulted on regulatory references proposals for banks, building societies, credit unions and PRA investment firms in FCA CP14/13 and PRA CP14/14, and for Solvency II insurers in PRA CP26/14. Both regulators delayed making rules in order to reflect on the recommendations of the Fair and Effective Markets Review (FEMR). The proposals set out in this consultation take into account these recommendations.

In this consultation the FCA and the PRA set out proposals for regulatory references for candidates applying for:

• Senior management functions under the Senior Managers Regime (SMR)
• Significant harm functions under the Certification Regime (CR)
• PRA senior insurance management functions under the Senior Insurance Managers Regime (SIMR)
• FCA insurance controlled functions
• Notified non-executive director roles and credit union NEDs
• Key function holders within an insurer

This paper will be of primary interest to banks, insurers and individual candidates for roles in the SMR, CR, SIMR, including notified NEDs, credit union NEDs and Key Function Holders.  The proposals in Chapter 3 will also be of interest to all authorised firms.

The FCA and the PRA expect comments by 7 December.

Full consultation

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