Lower-ranking bankers could be the unintended victims of new U.K. rules that make bosses responsible for regulatory lapses caused by their junior colleagues, a London firm of employment lawyers warned.
Bloomberg News reports that British regulations intended to improve internal oversight at banks may trigger a new wave of unfair-dismissal claims as managers attempting to protect themselves preemptively dismiss staff who could put the company at risk, said Jon Gilligan, a partner at GQ Employment Law.
From March 2016, managers at U.K. banks will be accountable to the Financial Conduct Authority and the Prudential Regulation Authority for lapses that take place on their watch. As a result, mistakes and suspicious conduct that may have once warranted an inquiry or reprimand may now result in termination because senior staff are less likely to take time to manage junior bankers’ performance, according to Gilligan.
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