The Financial Conduct Authority is expected to receive overwhelming calls not to include the legal function of banks and other financial institutions in its accountability regime for top executives. 

A consultation on the City watchdog’s discussion paper on its senior managers regime (SMR) closed on Monday, 9 January.

The SMR, which came into force six months ago, holds senior managers responsible for failures on their watch, exposing them to a fine or ban if they cannot justify the steps they took to prevent wrongdoing.

Last month, the Law Society warned that in-house lawyers could face a conflict of interest with their employers if they are included in the regime.

Its concerns about legal professional privilege are shared with the Building Societies Association, which submitted its response this week.