Are banking bosses finally to be held accountable for PPI mis selling scandal?
Earlier this week the Financial Conduct Authority published details of its ‘senior managers regime’ which will come into force in 2016. This will operate alongside the already introduced new criminal offence of reckless misconduct which carries a jail sentence of up to seven years.
These measures are designed to restrain the irresponsible behaviour and attitudes that drove scandals such as the PPI mis selling scandal. It is hoped that they’ll also prevent some of the other scandals of recent years – the manipulation of interest rates and rogue traders.
In the seven years since the financial crisis began only one senior banker the former HBOS executive Peter Cummings has been fined for his part in the near collapse of the bank and no one has gone to jail. High profile figures such as Fred Goodwin the former Chief Executive of the Royal Bank of Scotland have avoided punishment.
The new tough rules would mean that bank bosses and managers would be made personally responsible for wrongdoing unless they can prove they had done all they could to stop it happening.
Solicitor Paul Cahill comments:
“The victims of PPI mis selling have waited a long time to see the bank bosses brought into line. Many mis sold PPI claimants have been financially disadvantaged whilst these highly paid bosses who led the banks that fostered these mis selling practices have not only avoided punishment but in some cases they’ve gone on to take up new positions of similar responsibility elsewhere.
“Whilst I hope that these new measures put a stop to these mis selling practices in the future my concern now remains with all the victims for whom we’re reclaiming mis sold PPI.”
Click here to find out more about how to reclaim mis sold PPI
Content correct at time of publication