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A change of heart

15 January 2016 / Bianca Venkata
Issue: 7682 / Categories: Features , Regulatory
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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

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MOVERS & SHAKERS

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
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From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
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Writing in NLJ this week, Thomas Rothwell and Kavish Shah of Falcon Chambers unpack the surprise inclusion of a ban on upwards-only rent reviews in the English Devolution and Community Empowerment Bill
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
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