Former directors of failed banks could be banned from taking lucrative jobs in the City under plans being drawn up by the regulator.
Yesterday the FSA said in its annual business review it is exploring various options to bar former bank chiefs ‘on the basis that the person’s previous role as a director of a bank that failed raises fundamental questions about their competence or general suitability to perform a similar role again’.
These proposals will be set out in a discussion paper in the first half of the year, according to the Daily Mail.
This raises the prospect that former directors at Lloyds Halifax Bank of Scotland, Northern Rock and RBS still working in financial services could be stripped of their jobs or banned from taking up roles in the City in future.
The revelation comes in the regulator’s annual review – its last one before being replaced by the Financial Conduct Authority next year.
Options open to the watchdog could include barring former directors’ applications for ‘approved person’ status, the Mail reports. This is required for directors and board members, as well as anyone carrying out regulated activities such as giving financial advice.
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