A pervasive belief that regulators have not held senior executives accountable for conduct and events that led to the financial crisis is fueling an increased emphasis on personal liability in the financial services industry. As a result, compliance officers at several financial institutions have faced fines, banishment, suspension, or firing for their alleged roles in violating regulatory rules.
A recent report, by Thomson Reuters, ‘Rising personal liability–perception and reality: how best to manage personal regulatory risk,’ confirms this trend. The report, co-authored by Stacey English, head of regulatory intelligence for Thomson Reuters, is based on a survey of more than 2,000 risk and compliance practitioners at Thomson Reuters client summits in New York, London, and Sydney, as well as other global regions and included those representing banks, brokers, insurers and asset managers. While all senior corporate officers are expected to be held more accountable from now on, compliance officers believe that regulators are targeting them in particular.