ABSTRACT
This chapter considers what constitutes 'misconduct'. It focuses on the Conduct Rules, the Statements of Principle, the Conduct Standards, and the 'knowing concern' form of misconduct. Misconduct, particularly in the form of a breach of the Conduct Rules, assumes a new significance under the Senior Managers and Certification Regimes. The chapter addresses the Conduct Rules that apply to relevant authorised persons, that is, banks. There are two sets of Conduct Rules that apply to banks: one made by each of the FCA and PRA. Senior managers are subject to all the Conduct Rules made by the FCA and the PRA. From 7 March 2017, the FCA proposes to apply Rules 1 to 5 to all employees of RAPs save for a list of 'excepted employees'. Most non-executive directors ('NEDs') are senior managers, but so-called 'notified' NEDs are not senior managers.
