Top bankers to face jail for reckless decisions
By Beth FisherSenior UK bank managers could face seven years in jail or an unlimited fine if their actions cause their institution to fail
Section: Politics
Senior UK bank managers could face seven years in jail or an unlimited fine if their actions cause their institution to fail.
The new law, which comes into force today, is part of the government’s plans to reform the UK’s financial services sector to ensure that lessons have been learnt from previous financial crises.
The new rules mean that individuals working in UK firms face some of the toughest sanctions in the world.
“This government has learnt the lessons of the past,” commented George Osborne, the Chancellor of the Exchequer.
“The new criminal offence, which becomes law today, is the latest milestone in my plan to ensure that the British banking industry operates to the highest possible standard. It is absolutely right that a senior manager whose actions causes their bank to fail should face jail.”
From today, senior UK managers in banks, building societies or other investment firms regulated by the Prudential Regulation Authority, will have committed a criminal offence if:
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