Emerging Themes 2015 Another turbulent year for financial regulation

2015 is set to be another turbulent year for the financial services industry, especially for those working in UK banks. Few would disagree that there needs to be a significant improvement in banking standards or that bankers should be remunerated in a way that incentivises good behaviour and does not encourage excessive risk taking. The importance of maintaining confidence in the financial system cannot be overstated.

Reform of the Approved Persons regime is long overdue: the current arrangements are confusing and the regulators' expectations are unclear. However, the worry is that the pendulum may swing too far, with poor business judgment now criminalised and senior bankers
effectively deemed guilty until they prove their innocence. Such measures, whilst no doubt popular, raise serious concerns in terms of due process and fairness. Given the eventual likely extension of the new regime for senior bankers to other parts of the sector, everyone in financial services in the UK will be watching very carefully to see how it is implemented in practice.

This year's Emerging Themes contains the usual range of personal contributions by members of BLP's Financial Regulatory Group, which I am pleased to report has recently expanded to include our team of market-leading Competition lawyers. I hope you enjoy reading each of these articles