UK financial regulators propose easing vetting rules for finance employees

Oct 22 (Reuters) - Britain's financial regulators on Thursday proposed further easing of rules on vetting employees at finance firms, aiming to reduce regulatory burden and boost economic growth.

• The Senior Managers and Certification Regime was introduced a decade ago, after the 2008 financial crisis, to hold senior decision-makers accountable in regulated finance firms

• The Financial Conduct ​Authority and the Bank of England's Prudential ‌Regulation Authority are now proposing to scrap annual certification checks on about 139,000 employees below senior management level and replace regulatory approval with notification for senior roles

• Chief executives, finance chiefs and chairs would still need regulatory approval before taking up their posts, the regulators said, launching consultations on the proposals, with final policy expected in 2027

• The Bank of England said the changes are expected to save firms around £2 billion ($2.68 billion) over a 10-year period

• The regulators had in April already eased some rules to streamline senior manager accountability, as part of a broader government-led push to cut red tape

• As part of the latest proposal, the regulators are also raising the threshold on reporting conduct rule breaches for most staff below senior manager level, saying it would let the firms better target more serious misconduct

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(Reporting by Anusha Shah in Bengaluru and Chris Thomas in Mexico City; Editing by Daniel Wallis)