Banking: Financial Crime

Lord Campbell-Savours Excerpts

Wednesday 2nd December 2015 Lords Chamber

[Lord Bridges of Headley]

My Lords, I cannot comment specifically on this case; the noble Lord, who is much more experienced than I am in these matters, will understand that. On the reverse burden of proof, the regulators could use that only once they had established that there was a regulatory breach and that the senior manager was responsible for the area of the firm where the breach occurred. It was only at that point that they could ask the individual to prove that they took reasonable steps to prevent the breach occurring. Under the proposed statutory duty, the new statements of responsibilities will make it much easier for the regulators to establish quickly who is responsible. The regulator will then simply need to establish that the senior manager did not take those steps.

[Lord Campbell-Savours (Lab)]

My Lords, why is it that the American regulatory authorities frequently prosecute and we do not?

[Lord Bridges of Headley]

My Lords, I echo the point made by the noble Lord, Lord McFall: the financial companies face severe financial penalties. Furthermore, a new criminal sanction was created by the previous Government for those who manage firms in a reckless manner.