Mr. Gerry Cross:

That is not how we would see the construct here. Basically, what is being said in the scheme is that once you are a senior executive, you will be held accountable. Without anything to do with the firm, you will be held accountable for the general conduct standards and the additional conduct standards. The additional conduct standards are about how you run your area of the firm, for example, whether you run it properly, set up the proper systems and ensure that there are no breaches, etc. The important point, and the duty of responsibility to which I think the Deputy has referred, is that in addition, if an offence or breach is committed by the firm, and it is in your area, then you are also responsible for that. It is an additional thing which is built on top of a person's responsibility for what goes on in their area of the firm. The only way you can discharge that responsibility is by showing that you have taken the reasonable steps needed or expected in that case. The Deputy is absolutely right in how he has described the particular provision to which he has referred. However, it is an additional provision which states that where there has been a breach, then you are on the hook for it.