Offence of causing a financial institution to fail and other offences under FS(BR)A 2013
Produced in partnership with Michael Potts of Byrne and Partners LLP
Offence of causing a financial institution to fail and other offences under FS(BR)A 2013

The following Corporate Crime practice note Produced in partnership with Michael Potts of Byrne and Partners LLP provides comprehensive and up to date legal information covering:

  • Offence of causing a financial institution to fail and other offences under FS(BR)A 2013
  • Introduction to the senior managers regime
  • Criminal offence of causing a financial institution to fail
  • Elements of the offence
  • Definitions
  • Section 36 investigation/prosecuting authorities
  • Mode of Trial and Sentencing a section 36 of FS(BR)A 2013 offence
  • Dealing with section 36 offences in practice
  • Investigatory regime under the FS(BR)A 2013
  • Establishment of the Payment Services Regulator (PSR) and investigation powers
  • More...

Introduction to the senior managers regime

The Senior Managers and Certification Regime (SM&CR) is a comprehensive suite of legislation, regulation and conduct rules that is being progressively introduced and extended to financial institutions in the UK. For an introduction to the SM&CR, see Practice Note: SM&CR—one minute guide.

Further information on the background to, and the key principles of, the SM&CR can be found in Practice Notes:

  1. SM&CR—essentials for banks and PRA-designated investment firms

  2. SM&CR—policy development and key dates

  3. Conduct Rules for SM&CR Firms

The SM&CR was driven by both the Independent Commission on Banking (ICB) and the Parliamentary Commission on Banking Standards (PCBS) established in the wake of the LIBOR scandal. For a more detailed analysis of the LIBOR scandal and enforcement action which has resulted, see Practice Notes: LIBOR and enforcement action and Conspiracy to defraud, and News Analysis: Libor manipulation and defining dishonesty.

The PCBS report entitled, ‘Changing Banking for Good’ made various recommendations to address:

‘the profound loss of trust born of profound lapses in banking standards’.

It proposed the creation of the SM&CR which would ensure that the key responsibilities within banks would be assigned to specific individuals and the establishment of a criminal offence applying to ‘Senior Persons’ carrying out their responsibilities in a reckless manner.

Part 4 of the Financial Services (Banking Reform) Act 2013 (FS(BR)A 2013) implements the SM&CR and amends Part 5

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