![]() Much of the debate which took place at the time while the FSA’s regime was being developed focused around senior management accountability, and whether it is possible to design requirements for senior management which would reduce the likelihood of serious failures in the future. Underlying principles – spirit rather than letter In the light of external scrutiny in business practices and as the FSA embarks upon a new round of Arrow visits, we examine the regulatory role of senior management and provide a timely reminder of senior management’s significant responsibilities. As well as emphasising the importance of its Principles for Business, the FSA is constantly reiterating how today’s senior executives are to be held accountable for the effective and responsible running of the firms under their control. The principle of good faith is reminiscent of the FSA’s current principles-based approach to regulation. We review the guidance on senior management responsibility and the consequences of falling below its expectations.įor over three hundred years the insurance market has operated under the watchwords of utmost good faith. ![]() The principles-based approach to regulation emphasises the personal responsibility of senior management in compliance – individuals as well as companies are accountable for failures. ![]() Article by Mark Lehoucka and Michael Corrigan
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