Regulators in the UK are set to relax rules established after the 2008 financial crisis that aimed to hold City bosses accountable for misconduct. The Bank of England and the Financial Conduct Authority (FCA) announced plans to reduce reporting requirements for lower-level misconduct, potentially saving businesses around £2 billion over the next decade.

Key Proposals

The proposed changes include:

  • 140,000 managers will be freed from additional checks.
  • Only the most senior executives, such as chief executives and chief financial officers, will need to prove they are "fit and proper" annually and before taking new positions.
  • The reporting of minor infractions, such as tardiness or dropped calls, will no longer be mandatory.
  • Firms will only need to report serious misconduct and cases resulting in final warnings or terminations.

These proposals were unveiled during a dinner for City executives at the Mansion House in central London. They aim to significantly reduce the number of roles requiring enhanced scrutiny, which were initially implemented in response to public outrage over the banking crash.