City watchdog trims reach of senior manager rules

Martin Wheatley warned of an 'unintended consequence'. Picture: AFP

NEW rules making senior bankers more accountable for their actions will not now apply to non-executive directors (NEDs) who do not have specific duties such as overseeing pay and auditing, regulators said yesterday.

The so-called senior managers’ regime – due to take effect by 2016 – will plug a gap highlighted by the financial crisis when few individuals were held responsible after taxpayer cash was required to bail out a number of institutions.

The rules will cover board members and some other senior staff but will not now extend to regular non-execs. Possible sanctions include fines and dismissal.

Martin Wheatley, chief executive of the Financial Conduct Authority, said: “Including all NEDs in the new regime would risk the unintended consequence of changing the whole nature of this vital role.”

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