Banks and building societies face a bill of £260 million to put in place strict new rules that will overhaul the way lenders and regulators oversee finance professionals and will allow the clawback of bonuses up to seven years after they are awarded.
The Bank of England and the City regulator set out plans yesterday for much tougher vetting of senior managers that will enable executives to be held to account for failings that happen on their watch.
Together, big banks could have to spend about £170 million adapting to the new regime and nearly £10 million in annual running costs, according to estimates from the regulators, while smaller lenders will also face millions of pounds in set-up costs.
Under the new Senior Managers Regime,