Presumption of responsibility for bankers in UK

Senior bankers will be presumed guilty until proven innocent under strict new rules proposed by British regulators seeking to hold individuals accountable for bank failures.

The Financial Conduct Authority yesterday announced details of a “presumption of responsibility” rule which requires senior managers to demonstrate that where a firm is guilty of misconduct they “took such steps as a person in their position could reasonably be expected to take” to avoid it happening.

“The reversed burden of proof will put senior managers at banks under real pressure,” said Simon Morris, financial services partner with law firm CMS.