A Senior Manager can be liable under section 66A(5) of the Financial Services and Markets Act 2000 where:
This is usually known as the obligation to take ‘reasonable steps’.
‘Resaonable steps’ are the steps that a competent Senior Manager would have taken:
When determining whether or not a Senior Manager has taken ‘reasonably steps’ to avoid a breach of regulation, the FCA will have consider a wide range of circumstances. We set out those factors, and the practical steps to take, below:
Review the systems and control relevant to the area of the business for which you have responsibility. Consider what other systems and controls (if any) are necessary in order to ensure regulatory compliance. Document all decisions and action points. Implement action points in a timely manner.