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UK regulators have proposed scrapping an annual certification regime covering 139,000 financial services staff and reducing the number of roles requiring prior regulatory approval. The Prudential Regulation Authority estimates the changes could save firms £2 billion over 10 years; some measures need legislation, and the most senior roles would remain subject to approval.
UK banking regulators have announced plans to abolish annual certification checks for about 139,000 financial services staff and reduce the roles requiring prior regulatory approval, in changes the Prudential Regulation Authority says could save firms £2 billion over 10 years. The proposals would retain checks on the most senior positions, including chief executives, finance directors and chairmen, while some measures require legislation.
The plans were announced at a Mansion House dinner in the City by Prudential Regulation Authority chief Katharine Braddick and Financial Conduct Authority chief Nikhil Rathi. The certification regime requires covered staff to undergo annual checks and appear on a financial services register. Regulators plan to remove that framework.
Separately, rules requiring executives to be pre-approved by regulators would be scrapped for roles below the most senior positions. The proposals do not remove approval requirements for roles such as chief executive, finance director and chairman. The source report says that some changes will need legislation, but does not specify the legislative timetable or which measures require new laws.
The PRA said the changes are intended to reduce administrative work while maintaining accountability for people in the most important roles. Its estimate of £2 billion in savings over a decade is a forecast for firms, not a confirmed saving already realised. Regulators said the freed resources could be directed toward customer and market outcomes, recruitment, innovation and investment.
How the Proposed Savings Could Affect Banks
The proposals could change how banks and other financial firms manage staff oversight, recruitment and senior appointments. Removing annual certification for a large group of employees would reduce a recurring compliance obligation; narrowing pre-approval requirements could also shorten the process for appointing people to less senior roles. The regulators’ stated case is that firms could redirect some of that effort and spending.
The estimated £2 billion over 10 years gives the reforms a measurable industry-wide financial rationale, but the source does not set out how the estimate is calculated or how savings would be distributed among firms. Nor does it establish that banks will pass savings on to customers or use them in any particular way. The changes matter because they alter a framework designed to support individual accountability after the financial crisis, while leaving some senior-role controls in place.
The announcement also comes as the government has pressed regulators to make economic growth a priority. That policy backdrop does not establish that growth is the sole reason for the proposals. The source report separately says banks are braced for a possible £2 billion tax increase in the Budget; that is a distinct issue, not part of the regulatory savings estimate.
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Rules Introduced After the Financial Crisis
The certification regime was introduced about 10 years ago, after the 2008–09 financial crisis, which was widely blamed on banks. Its stated purpose was to instil a culture of accountability by requiring firms to check relevant staff annually and include them on a register. The proposed changes would roll back part of that post-crisis approach, rather than remove all regulatory oversight.
Other financial rules have also changed since the crisis. The report notes that the UK bonus cap was scrapped in 2023. It does not say the current plans would change pay rules, and the bonus-cap change should not be confused with the staff certification and approval proposals announced by Braddick and Rathi.
The article also reports on Barclays’ quarterly results: the bank’s third-quarter profit rose 12% to £2.3 billion, while its shares fell 2.3% after results missed analyst expectations, with fixed-income trading income down 19% to £1 billion. Those figures are company-performance news reported alongside the regulatory announcement; they are not evidence about the effects of the proposed rule changes.
“These keep checks in place for the most important roles, meaning individuals are accountable for their actions, but reduce the administrative burden.”
— Katharine Braddick, Prudential Regulation Authority chief
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Legislation and Implementation Still Pending
The announcement describes plans, not completed rule changes. The source report says some measures require legislation but does not identify the specific bills, legislative steps or expected dates. It also does not give a start date for the proposals or explain how existing certification records would be handled.
The £2 billion figure is a 10-year estimate, and no methodology or breakdown by firm is provided in the report. It remains unclear how quickly any savings might arise, whether firms would experience different costs, or how the regulators will assess whether accountability and customer protections remain effective after the changes.
The source material identifies Braddick and Rathi as the announcing regulators but includes no detailed response from banks, staff representatives or consumer groups. Their views, and any further safeguards or revisions during the process, are not established by the information available here.
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Regulators Must Set Out the Route
The next steps are for regulators and lawmakers to clarify which parts of the package can be implemented through regulatory changes and which require legislation. The source report does not provide a consultation timetable, draft rules or a date for implementation, so no firm schedule can be stated.
Further detail will be needed on how the revised approval framework defines the most senior roles, what oversight replaces annual certification for other staff, and how regulators will monitor accountability. Until those details and any necessary legislation are settled, firms and employees should treat the announcement as a proposed change rather than a new rule already in force.
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Key Questions
What banking rules do UK regulators plan to change?
The PRA and FCA plan to abolish the annual certification regime covering about 139,000 financial services staff and reduce the number of executive jobs requiring prior regulatory approval.
Will the most senior banking jobs still need regulatory approval?
Yes. The proposal would retain pre-approval for the most senior positions, including chief executives, finance directors and chairmen. The report does not give a complete list of roles that would remain covered.
How much do regulators expect firms to save?
The PRA forecasts £2 billion over 10 years. This is an estimate attributed to the regulator, and the source report does not explain its calculation or provide a breakdown by firm.
Are the changes already in force?
No. They were announced as plans. Some measures require legislation, and the source report does not state an implementation date.
Why were the certification rules introduced?
The regime was introduced about 10 years ago after the 2008–09 financial crisis, with the stated aim of instilling a culture of accountability through annual staff checks and a financial services register.
Source: rss
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