Bank directors to face City jobs ban?

23 March 2012

A ban from taking on lucrative jobs in the City could be on the cards for former directors of failed UK banks.

Such action is being considered by the Financial Services Authority (FSA), along with various other options, as it aims to prevent bosses prospering from high-paying roles on the basis that they have previously steered an organisation downwards, This is Money reports.

The FSA, which is the financial regulator for the UK, noted there should be question marks over the competence and suitability of these individuals to succeed in roles similar to those they have already failed in.

Paul Moore, who played a part in uncovering poor lending practices at HBOS, said of such industry figures: "They should be fined as much as possible and publicly censured. But the FSA should have done this in the first place."

A discussion paper, due before 2012's halfway mark, will look into the matter in-depth and could have grave consequences for the former heads of Royal Bank of Scotland, Northern Rock, Lloyds, Halifax and Bank of Scotland.

By Asim Shah

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development