ABSTRACT
This chapter explores the accountability of bank directors, specifically their liability for the actions of their banks and whether current sanctions being imposed hold them to account. It uses academic theory to assess the sanctions used by regulators with regard to the impact these sanctions have on the behaviour and mentality of bank directors. Comparisons are drawn between the approaches to the issue taken by the United Kingdom (UK) and the United States of America (US), as well as other relevant jurisdictions and international initiatives. This chapter discusses enforcement measures that include financial sanctions, director disqualification and prison sentences. It is lesser-used measures such as banking licence revocation and the personal liability of directors are considered. The chapter assesses the requirements a bank director must fulfil under the approved persons regime for the Financial Conduct Authority (FCA) see: FCA, 'Controlled Functions' and for the PRA: Bank of England, 'Approved Persons Controlled Functions' and subsequently when they should be removed.
