6  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  6  To address the “rolling bad apples” problem, mechanisms are now in place in the UK to ensure that when individuals move on their history will be known to those who consider hiring them. The FSB is now considering whether to adopt such an approach more broadly. UK authorities have used their convening powers to encourage market participants to establish standards of market practice that are well understood, widely followed and, crucially, that keep pace with market developments. That’s why the global FICC Market Standards Board is establishing readily understood standards for their markets. And it’s why global FX Committees will launch in May the first consistent code of conduct for FX markets. The best in the markets are codifying the best of markets. But codes are of little use if nobody reads, follows, or enforces them. This is where the UK’s Senior Managers Regime (SMR) for senior decision-makers of banks, building societies and major investment firms comes in. The SMR addresses the common refrain of senior management that they weren’t aware that misconduct was taking place in their firms. The SMR re-establishes the link between seniority and accountability. Senior Managers now must take reasonable steps (including training or proper oversight) to prevent or stop regulatory breaches in their areas of responsibility. Adoption is spreading. Some international firms are voluntarily adopting elements of the SMR’s certification requirements to strengthen their global operations. And the FSB is now reviewing the merits of such “responsibility mapping”.
We host crisis management groups for the UK’s globally systemic banks, insurers, and systemic CCPs and attend all such meetings internationally for firms with significant operations in the UK. And we conduct exercises with other major jurisdictions to test preparedness. 10  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  10  That means recognising that because risks to financial stability are constantly evolving we must continue to work together to identify emerging vulnerabilities in a timely and consistent manner. 12  And that means not merely resisting the forces of fragmentation but actively building an open global financial system that places increasing reliance on, and deference to, each other’s national regimes when they achieve similar outcomes. A decade on from the start of the crisis, now is the time to take the high road to the benefit of all. 12  Just as the FSB is doing in its work to assess the financial stability implications – both opportunities and risks – of FinTech. 11  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  11