Approved person regime extension puts more bosses at risk
More named managers in the UK’s biggest insurers could face criminal prosecution for company failings under a new regime proposed by the Financial Services Authority (FSA), the FT reports.
Managers who exert a significant influence over their companies will face new test an interviews from as the FSA widens its "approved persons" regime this week.
The tests cover the largest 40-50 banks, insurers and other institutions that it supervises. And the individuals will be personally subject to criminal prosecution for any failings.
Six months to name names
The insurers will have up to six months to identify people who might expose their institution to significant risk or who exert a significant influence over their company.
The FSA will then examine their experience and record to ensure they are fit for the role and, in some cases, may ask to interview them. The FSA already "approves" executives taking jobs such as finance director and risk director.
Non-execs to follow
The FSA will look in the autumn at the approved persons regime in connection with non-executive directors.
