Overseas banks 'to face tougher standards'
Overseas banks will come under greater scrutiny in the UK.
When governing the conduct of UK banks, the Financial Conduct Authority (FCA) and its predecessor the Financial Services Authority have found many reasons to be critical of banking practices in the UK, with this leading to a myriad of regulatory changes in recent years.
However, while British financial institutions have been busy making changes to avoid the problems of the recent past, there has been one potential area that could be overlooked; that of foreign banks that have UK outlets.
Recognising this danger, the Treasury has launched a consultation on proposals to extend its new, more rigorous regime of standards to these foreign banks. It would mean bodies like the FCA would be able to fine or impose other sanctions on senior managers at such banks.
The Senior Managers and Certification Regime for UK banks was part of the Banking Reform Act in 2013, but at the time it only applied to British institutions. However, chancellor George Osborne announced in his June 2014 Mansion House speech that the government wanted this to apply to all banks operating in Britain, whether UK-based or not.
Economic secretary to the Treasury Andrea Leadsom commented: “A key part of our long term economic plan is to strengthen Britain’s banking sector so that it works better for customers and businesses. Ensuring that our banks are properly run is vital for the health of our economy.
“As this consultation makes clear, the government is determined to tackle unacceptable behaviour by holding senior bankers fully accountable. We are determined to make sure that all banks in Britain operate with the highest standards.”
This is the kind of measure that may prove very popular politically and chime well with the public, not least with an election approaching. Moreover, as well as the government being seen to do something about a potential problem, it also would mean in practice that no overseas bank could see the UK as a place where they could operate under soft touch regulation.
After all, if such laxity was to apply, many foreign banks might consider Britain a place where they could act using practices not allowed in their own countries, where governments will have implemented their own stiffer regulatory regimes.
For overseas banks, now may be a good time to seek to recruit workers who are skilled in understanding the UK banking system and the regulations now in place. This will help foreign banks adjust to the specific regulatory requirements of the country as it applies already to Uk banks. Working with a specialist financial jobs recruitment agency may be an invaluable step in finding the people with the requisite skills and knowledge.
The consultation document was published yesterday (November 17th) and the period for submissions will end on January 30th next year. During this time, the submissions made by foreign banks and others may end up changing the details of the forthcoming legislation in some respects, but there can be little doubt that the final outcome will be the government taking measures to ensure senior managers of overseas-based institutions keep on their toes.
Signup to receive the latest discipline specific articles
Related articles
Teaser
TechnologyContent Type
General
19/03/24
Summary
The year 2024 emphasises the crucial role of RegTech — a beacon guiding firms through the evolving global regulatory landscape, enabling them to connect the dots between short-term challenges and
by
Paul Roche
Teaser
TechnologyContent Type
General
19/03/24
Summary
The UK tech sector retains the number 1 spot in Europe and number 3 in the world as sector resilience brings continued growth. With this demand comes stiff competition. London offers a wide range
by
Ghazal Mayahi
Teaser
GeneralContent Type
Career Advice
19/03/24
Summary
Are you considering a change of scenery? Just look at London - an incredibly diverse city, with over 1,600 languages spoken and 300 nationalities represented. At the centre of the UK's 4.2 milli
by
Kelvin Murphy
Related jobs
Salary:
£70,000 - £80,000 per annum
Location:
West Yorkshire
Industry
Business Services
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£80,000 - £100,000
Job Discipline
IT Audit
Contract Type:
Permanent
Description
Marks Sattin is currently recruiting for a Senior IT Audit Manager for a client who offers excellent hybrid working.
Reference
BBBH176528
Expiry Date
01/01/01
Author
David ClampAuthor
David ClampSalary:
Negotiable
Location:
London
Industry
Media & Communications
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£70,000 - £80,000
Job Discipline
Qualified Finance
Contract Type:
Permanent
Description
A high-growth, PE backed media advertising business based in the heart of London is currently seeking their next hire!
Reference
HAS1230099
Expiry Date
01/01/01
Author
Hannah SpearsAuthor
Hannah SpearsSalary:
£66,000 - £76,000 per annum + + Bonus + Benefits + Hybrid Working
Location:
London
Industry
Energy, Resources and Industrial
Qualification
None specified
Market
Financial Services
Salary
£70,000 - £80,000
Job Discipline
Risk
Contract Type:
Permanent
Description
We are recruiting for an Oil & Products Analyst with experience working in the Commodities market, to join one of the biggest players within the trading and shipping industry worldwide.
Reference
BBBH179800
Expiry Date
01/01/01
Author
Deem NaPattaloongAuthor
Deem NaPattaloongSalary:
£35,000 - £40,000 per annum
Location:
Doncaster, South Yorkshire
Industry
Consumer & Retail
Qualification
None specified
Market
Commerce & Industry
Salary
£40,000 - £50,000
Job Discipline
Part Qualified & Transactional Finance
Contract Type:
Permanent
Description
Marks Sattin are currently recruiting a Payroll Supervisor on behalf of a leading retail business based in Doncaster.
Reference
BBBH179766
Expiry Date
01/01/01
Author
Yasmin CloughAuthor
Yasmin CloughSalary:
£65,000 - £80,000 per annum + + Bonus + Benefits + Hybrid Working
Location:
London
Industry
Energy, Resources and Industrial
Qualification
None specified
Market
Financial Services
Salary
£80,000 - £100,000
Job Discipline
Risk
Contract Type:
Permanent
Description
We are recruiting for a Senior Market Risk Analyst with experience in working with refined products (e.g. blending, storage, biofuels etc).
Reference
BBBH179661
Expiry Date
01/01/01
Author
Deem NaPattaloongAuthor
Deem NaPattaloongSalary:
£35,000 - £40,000 per annum + bonus, hybrid, private medical
Location:
West Yorkshire
Industry
Energy, Resources and Industrial
Qualification
None specified
Market
Commerce & Industry
Salary
£40,000 - £50,000
Job Discipline
Treasury
Contract Type:
Permanent
Description
Treasury Analyst role to specialise in liquidity management and cash flow forecasting. Hybrid working
Reference
BBBH179764
Expiry Date
01/01/01
Author
Megan SmithAuthor
Megan SmithSalary:
£25,000 - £35,000 per annum
Location:
West Yorkshire
Industry
Professional Services
Qualification
Part qualified
Market
Commerce & Industry
Salary
£35,000 - £40,000
Job Discipline
Internal Audit
Contract Type:
Permanent
Description
A national leading accountancy firm looking to recruit a Senior Internal Auditor to join the business.
Reference
BBBH177835
Expiry Date
01/01/01
Author
Rajveer SanghaAuthor
Rajveer SanghaSalary:
£180,000 - £200,000 per annum + Equity, Bonus and Benefits
Location:
England
Industry
Professional Services
Qualification
Fully qualified
Market
Executive Search
Salary
£175,000 - £250,000
Job Discipline
Private Equity Executive Search
Contract Type:
Permanent
Description
Marks Sattin executive Search is working with an international PE-Backed Buy and Build Corporate Services Business.
Reference
TA3218
Expiry Date
01/01/01
Author
Executive SearchAuthor
Executive SearchSalary:
£60,000 - £65,000 per annum
Location:
London
Industry
Transport & Logistics
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£60,000 - £70,000
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
We've partnered with an international airline group who are in search of a systems accountant for a 12 Month assignment.
Reference
BBBH179790
Expiry Date
01/01/01
Author
Jaden AlieAuthor
Jaden AlieSalary:
€75,000 - €85,000 per annum
Location:
Dublin City Centre, Dublin
Industry
Business Services
Qualification
Fully qualified
Market
Commerce & Industry
Salary
£70,000 - £80,000
Job Discipline
Qualified Finance
Contract Type:
Contract
Description
Managing a Finance team and overseeing the day-to-day monitoring, maintaining and updating of the finance systems, as well as contributing to the development and implementation of system enhancement..
Reference
BBBH179794
Expiry Date
01/01/01
Author
Sarah FallonAuthor
Sarah Fallon