Oliver Dearie has spoken on the rationale behind the proposed changes to the way in which BoE is looking to change its approach to enforcement. He said the proposals reflect lessons learned over the past decade and reflect the principles of:
- being clear, transparent and accessible;
- learning from past investigations;
- maximising efficiency while not compromising on rigour or fairness;
- actively furthering statutory objectives; and
- further cementing the importance of individual accountability.
His thoughts covered the role of the main BoE and the PRA. He commented that, in the past 10 years, key statistics show:
- 70 investigations;
- 25 outcomes against 14 firms and 11 individuals;
- 5 individual bans;
- £221m in fines; and
- fines under the SMCR imposed for breaches of both individual and senior manager Conduct Rules.
The changes now proposed include:
- clarifying the approach in FMI enforcement;
- creating a new “early account scheme” that would allow those under investigation to provide all relevant materials at the outset;
- an enhanced early settlement discount of up to 50%;
- better consistency in how penalties for PRA firms are calculated; and
- updating the threshold for “serious financial hardship”.
He spoke of the logic behind each principle and the proposed starting point for calculating fines. The consultation closes on 4 August.