Feb 23 (Reuters) - Chairmen and non-executive directors of insurance companies will be included in Britain's new regime to make top financial officials accountable for their actions, the Bank of England announced on Monday.
Britain is finalising a new Senior Persons Regime to make it easier for key bank staff to be held to account by regulators. These include top executives, key non-executive directors that head influential committees and senior traders.
Lawmakers have complained that few individuals were hauled over the coals after taxpayers had to rescue several lenders in the 2007-09 financial crisis.
Andrew Bailey, the Bank of England deputy governor who heads the central bank's supervisory arm, said on Monday that chairmen, senior independent non-executives and chairs of key committees at insurers will also come under the new regime.
Appropriate and robust accountability for senior managers in financial institutions is not a regulatory burden, Bailey said.
"Non-executive directors are also key in financial institutions: they must scrutinise effectively the way the senior management team runs the business," Bailey said in an opinion piece in Monday's Financial Times.
At 1000 GMT on Monday the Bank of England will set out how the new regime will apply to non-executive directors of banks and insurers.
British financial services minister Andrea Leadsom told Reuters this month the government will shortly endorse the new regime formally and announce how it will be phased in.
The new rules have raised concerns among bankers who say elements such as the so-called reversal of the burden of proof will make it harder to recruit top officials. An individual will be sanctioned for rule breaches unless they can demonstrate that they took reasonable steps to stop or avoid a problem. (Reporting by Huw Jones; Editing by David Goodman)
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