The consultation enables the government to apply the Senior Managers and Certification Regime on all banks operating in the country.
Initially introduced for the local banks in the Banking Reform Act in 2013, the Senior Managers and Certification Regime ensures that the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) can fine or sanction senior bank managers for misconduct that occurs in their areas of responsibility.
UK Treasury Economic Secretary Andrea Leadsom said: "A key part of our long term economic plan is to strengthen Britain’s banking sector so that it works better for customers and businesses.
"Ensuring that our banks are properly run is vital for the health of our economy.
"As this consultation makes clear, the government is determined to tackle unacceptable behaviour by holding senior bankers fully accountable."
In an effort to strengthen the regulation of the financial services industry, the UK government has already created two new financial regulators, PRA and FCA in 2013, to replace the flawed, tripartite system that was in place during the financial crisis.
In June, the government also announced the establishment of the fair and effective markets review (FEMR) that will make recommendations on the efforts to be undertaken to reinforce confidence in the fairness and effectiveness of financial markets in June 2015.
The last date for submission of responses on the consultation is 30 January 2015.
Image: A key part of the UK government’s long term economic plan is to strengthen the banking system. Photo: © Crown copyright.
