The head of the Financial Conduct Authority's (FCA) Regulatory Decisions Committee has predicted an increase in cases against individual business executives, as a result of a drive to improve culture and governance in the City.

Speaking at the Legal Week Banking Litigation and Regulation Forum today (14 June), former Herbert Smith Freehills litigator Tim Parkes said the Senior Managers and Certification Regime, which the FCA introduced in March, would "give greater clarity over an individual's responsibilities and increase accountability", leading to a likely rise in cases against individuals.

He also predicted a rise in contested cases as "individuals tend to have more issues in dispute, because the impact of any disciplinary sanctions on an individual's financial position and reputation can be greater than for cases against firms".

Parkes, former executive partner and head of litigation at Herbert Smith Freehills, took up his role as chairman of the Regulatory Decisions Committee in January.

Delivering the keynote speech, he said the committee's workload had already increased after consumer credit firms were brought under the FCA's remit and added that proposals set out in an FCA consultation paper designed to improve enforcement decision-making would further broaden the scope of its work.

He told the forum: "Conduct generally, and culture and governance in particular, have become important priorities for politicians and regulators, and there remains a widespread view – reflected in the media – that there is more to do on the part of the regulators, both to deal with the past and to reduce the chance of a similar crisis in the future."

Held at the Waldorf Hilton, this year's forum is being jointly chaired by Clifford Chance partners Simon Davis, who in 2014 led the FCA's review of its investigation into the insurance industry, and Carlos Conceicao, former head of the then Financial Services Authority's wholesale group in enforcement. Speaking about the implications of the Senior Managers Regime in relation to enforcement action, Conceicao said: "There has been a fear factor about the regime – how it will lead to heads on sticks – we'll see if that's the case."

He went on to say of the Regulatory Decisions Committee: "Is it an effective check or, as a committee of the board of the regulator, is it really beholden to what the regulator and the enforcement division want to do?"

Other speakers include Adrian Beltrami QC, of 3 Verulam Buildings; Matthew Allen, Eversheds' global head of financial services disputes and investigations; Shannon Lazzarini, head of group litigation at Unicredit; Hogan Lovells investigations specialist Elaine Penrose; Mayer Brown commercial litigation partner Susan Rosser; and RPC's Parham Kouchikali.

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