The UK Senior Insurance Managers Regime is now in force, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have announced.

Along with the senior managers regime for the banking sector, the scheme holds individuals at all levels in relevant businesses to “appropriate standards of conduct”.

Acting FCA CEO Tracey McDermott says the change heralds a new era of increased individual accountability.

“We are determined to embed a culture of personal responsibility,” she said.

PRA CEO Andrew Bailey says robust accountability for senior managers in financial institutions is crucial to an effective economy.

“At the heart of the new accountability regime… is one very simple principle – you can delegate tasks but you cannot delegate responsibility.

“This means that senior managers at banks and insurers should know what they are responsible for and can be held accountable for failings in their area.”