Alongside the Prudential Regulation Authority, the Financial Conduct Authority has introduced the finalised rules – which have been in development since 2013 – to address the differences between incoming branches and UK relevant firms.
Martin Wheatley, chief executive at the FCA, said: “Today’s rules are the latest changes aimed at embedding personal accountability in the culture of financial services and are a crucial step in rebuilding public trust.”
The rules include changes to the scope of the FCA’s approved persons regime; changes to the fitness and propriety assessment of candidates in “significant influence functions”; changes to governance arrangements; and new conduct rules.
The FCA said today’s rules will minimise the potential for arbitrage across UK relevant incoming firms and incoming branches, European Economic Area branches, and individuals working in Solvency II firms.
The Solvency II Directive is an EU Directive that codifies and harmonises the EU insurance regulation concerning the amount of capital that EU insurance companies must hold to reduce the risk of insolvency.
“These changes are an important part of the overall drive to raise standards of individual conduct across the financial services industry,” said the FCA.