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Eversheds comment: New reckless management offence for UK bankers is largely a political move

  • Global
  • United Kingdom

    07-03-2016

    Commenting on the introduction of the new Senior Managers and Certification Regime for UK bankers, Greg Brandman, partner and financial regulation expert at law firm Eversheds, says:

    "This is a very significant development in the regulation of individuals working for UK banks. The previous regime was not fit for purpose and the increased clarity which the new regime requires around the scope of individual responsibilities of senior managers is generally to be welcomed. The government’s decision to drop the presumption of responsibility (aka the reverse burden of proof for senior managers) is also a welcome development.

    “However, the new criminal offence of reckless management of a bank will largely be seen as a political move. Although each case will turn on its own facts, the prospects of the Crown discharging the criminal burden of proof in order to satisfy the multiple evidential hurdles required by the new offence are so remote that it is very unlikely that this offence will ever be successfully prosecuted.”

     

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