Pursuant to section 66A of FSMA, every Senior Manager is subject to the ‘duty of responsibility’. Under the ‘duty of responsibility’, Senior Managers can be liable if it can be proved that they failed to take “reasonable steps” to ensure that a breach does not occur in relation to the area of the business for which they are responsible. The burden of proving that this was the case lies with the FCA.
In deciding whether to take enforcement action against a Senior Manager for breach of the ‘duty of responsibility’, the FCA will look at all of the circumstances of the matter, including the seriousness of the breach and the seniority and responsibilities of the senior manager in question. The Senior Manager’s Statement of Responsibilities will also be a relevant factor taken into account by the FCA.
