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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

DWF—19 appointments

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

NEWS
The Supreme Court issued a landmark judgment in July that overturned the convictions of Tom Hayes and Carlo Palombo, once poster boys of the Libor and Euribor scandal. In NLJ this week, Neil Swift of Peters & Peters considers what the ruling means for financial law enforcement
Bea Rossetto of the National Pro Bono Centre makes the case for ‘General Practice Pro Bono’—using core legal skills to deliver life-changing support, without the need for niche expertise—in this week's NLJ
In this week's NLJ, Steven Ball of Red Lion Chambers unpacks how advances in forensic science finally unmasked Ryland Headley, jailed in 2025 for the 1967 rape and murder of 75-year-old Louisa Dunne. Preserved swabs and palm prints lay dormant for decades until DNA-17 profiling produced a billion-to-one match
Small law firms want to embrace technology but feel lost in a maze of jargon, costs and compliance fears, writes Aisling O’Connell of the Solicitors Regulation Authority in this week's NLJ
Charlie Mercer and Astrid Gillam of Stewarts crunch the numbers on civil fraud claims in the English courts, in this week's NLJ. New data shows civil fraud claims rising steadily since 2014, with the King’s Bench Division overtaking the Commercial Court as the forum of choice for lower-value disputes
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