The FCA plans to scrap the application process to convert Approved Persons to Senior Managers as part of new proposals to overhaul the authorisation of individuals.

This means that the majority of FCA regulated firms will be able to automatically convert individuals from the Approved Persons Regime to the new Senior Managers regime without undertaking an application process, removing a further vetting process for senior managers.

The FCA said: “This is so staff can focus on making sure their staff know what they need to do.”

In addition to a change in the application process, the new set of proposals on how firms and individuals will move to the Senior Managers and Certification regimes will also apply to insurers, currently the Duty of Responsibility only applies to senior managers of banks.

The proposals, which aim to make individuals more accountable for the conduct and competence of their staff, will have different approaches for different types of firms due to their different size and nature.

Under the Duty of Responsibility, senior managers are responsible and accountable for the business areas they lead, and the FCA can take action against the senior manager responsible where their firm has violated an FCA requirement.

However, the FCA must demonstrate that the Senior Manager did not take steps to avoid the breach.

Jonathan Davidson, executive director of supervision Retail and Authorisations at the FCA, said: “Culture and governance in financial services and its impact on consumer outcomes is a priority for the FCA. Extending the Senior Managers and Certification Regime will drive forward culture change in financial services firms.

“This next set of our proposals outline our plans for a smooth transition to the new regime, which is simple, clear and proportionate. Indeed, the vast majority of firms will not need to submit applications to convert existing Approved persons to Senior Managers.”

The FCA is also considering what the move to the new regime means for the Financial Services Approved Persons Register, an area of controversy with some professional bodies concerned the register will be abandoned.

The FCA will finalise its approach in summer 2018 and welcomes feedback on the proposals.

The date for the implementation of the new rules will be announced and set by the Treasury in the coming year.