The UK Government has strengthened provisions requiring financial services managers in the non-banking sector to take personal responsibility for their decisions.

The Senior Managers and Certification Regime will apply to all financial services businesses, including reinsurance and insurance.

It replaces the “presumption of responsibility” for senior managers with a “duty of responsibility”.

Financial Conduct Authority Acting CEO Tracey McDermott says it is “an important step in embedding a culture of personal responsibility throughout the financial services industry”.

“The Senior Managers and Certification Regime is intended to deliver better decisions to help avoid problems arising,” she said. “We remain committed to holding individuals to account where they fail to meet our standards.”

The reform was recommended following a review in June by the Treasury, regulators and the Bank of England.