Lord Mackenzie of Framwellgate
Main Page: Lord Mackenzie of Framwellgate (Non-affiliated - Life peer)Department Debates - View all Lord Mackenzie of Framwellgate's debates with the Cabinet Office
(8 years, 8 months ago)
Lords ChamberClearly, this was an appalling case of mismanagement on the part of the managers at Barclays at the time, and the record fine that Barclays has faced reflects that. I agree with the noble Lord that financial regulatory change is needed, as well as a change in culture of many financial firms. Key to this is ensuring that senior managers’ responsibilities are crystal clear. I stress that the most important task is to find out who is responsible for such failings as we have seen at Barclays. Up till now, regulators have sometimes found it difficult to hold senior managers personally accountable for management failings in the area for which they are responsible because there is such lack of clarity about who is responsible for what. This is precisely what the new senior managers regime addresses. The Government think it perfectly reasonable for the regulator then to show that the senior manager failed to take reasonable steps to avoid the failings.
My Lords, on the wider point of strengthening corporate governance, and given that most employees know what is going on in a company, what plans do the Government have to safeguard whistleblowers in the financial sector?
The Bill does not change any existing obligations on individuals working in the financial services industry to report wrongdoing whether within their own firm, to regulators or to other authorities. To address the noble Lord’s question directly, the FCA published in October a package of rules designed to encourage a culture in banks where individuals feel able to raise concerns and challenge poor practice and behaviour. Those rules will also constitute non-binding guidance for other financial services firms.