FCA chief denies new regime is soft on bankers

Rules designed to hold executives to account come into effect alongside new offence of failing to prevent bank collapse

The City's top regulator has said a new system designed to hold bank executives to account is "not about trying to get heads on sticks".

The new regulatory regime, which came into force on Monday and holds top executives responsible for failures in banks, has been watered down since it was first proposed, though Tracey McDermott, the acting head of the Financial Conduct Authority, insisted it would still have a major impact.

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