Senior manager checks face cuts with £2 billion in savings
The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) proposed simpler accountability rules on October 22, 2026. They estimate £2 billion in savings over 10 years, with annual certification removed for around 139,000 people.
Approval gives way to notification
The proposals replace regulatory pre-approval with notification for Chief Actuaries and Chairs of Risk and Audit Committees.
CEOs, CFOs and Chairs retain pre-approval and fitness tests; regulators can also require approval for notified roles in high-risk cases.
Firms remain responsible for employee suitability, competence and conduct.
Removing the Certification Regime ends annual checks and Financial Services Register requirements for around 139,000 staff below senior manager level.
The plans also raise misconduct reporting thresholds for most such staff and simplify conduct training.
Regulators say accountability standards remain unchanged, while lower administrative costs free resources for recruitment, innovation and investment.
Some changes require legislation.
Fewer approvals, shorter processing
PRA pre-approvals would fall 43 percent and its regime's overall burden would halve.
For FCA Enhanced solo-regulated firms, around 15 percent of applications move to notification; removing two senior management roles saves a further 19 percent.
Within the proposed two-month deadline, the PRA already processes 98 percent of applications and the FCA 98.3 percent.
April 2026 changes raised enhanced firm thresholds 30 percent.
The regime began 10 years ago; consultation closes January 22, 2027, with policy to follow in 2027.
Accountability remains with firms
Fewer regulatory approvals do not remove firms' responsibility for staff suitability or misconduct.
PRA chief Katharine Braddick and FCA Deputy CEO Sarah Pritchard said accountability would remain intact under simpler rules.
Implementation depends partly on legislation, rather than consultation alone.