An exact implementation date is to be confirmed by the Treasury.

The UK financial watchdog has delivered asset managers an early Christmas present by allowing senior staff more time to prepare for wide-reaching new conduct rules.

The Financial Conduct Authority said Wednesday that plans to extends the Senior Managers Regime to all sectors of the UK’s financial services industry would now apply to insurers from late 2018 and other institutions, including money managers, in mid to late 2019. 

An exact implementation date is to be confirmed by the Treasury. 

The new rules, which have applied to banks since 2016, intend to improve individual accountability across financial services. 

Because so few executives have been held personally accountable for trading scandals that affected the foreign exchange, inter-bank lending and gold markets, ordinary investors are distrusting of large financial institutions. And the FCA is seeking to change this. 

Such scandals have prompted regulators to try and point the finger at individuals in the event of wrongdoing, as opposed to levying fines on faceless corporations. 

“Under the duty of responsibility, senior managers are responsible and accountable for the business areas they lead,” the FCA said. “The FCA can take action against the senior manager responsible where their firm has contravened an FCA requirement in their part of the business.”

The challenge for asset managers, however, in complying with the regime is determining whether they fall within one of three categories – core, enhanced or limited scope – all of which impose different obligations on companies. 

In the investment management space, arrangements with third-parties are ten to the dozen and flatter operating structures are more common, somewhat complicating application of the new rules. 

Asset managers with annual revenues exceeding £35 million ($47 million) will be subjected to enhanced controls, the FCA has said.

Following a consultation earlier this year, the FCA has said “given the differences in the size and nature of firms covered by the extension, the FCA is proposing proportionate approaches for different types of firms.”