On 3 July, HM Treasury published for consultation its proposals on “Sanctions for the directors of failed banks“, requesting responses by 30 September 2012.
The consultation paper seeks comments on whether the Financial Services Bill should introduce a “rebuttable presumption” that the director of a failed bank was not suitable to be approved by the regulator to hold a position as a senior executive in a bank. The paper does not attempt to define the situations in which a bank would be considered to have “failed”. The Government also asks whether there should be criminal sanctions for serious misconduct in the management of a bank, whether through the imposition of strict liability, or through new offences of recklessness, negligence or incompetence.
Read more on the Herbert Smith Financial Services Regulation notes.
Key contacts
Steve Bell
Managing Partner - Employment, Industrial Relations and Safety (Australia, Asia), Melbourne
Emma Rohsler
Regional Head of Practice (EMEA) - Employment Pensions and Incentives, Paris
Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.