One in three submissions required from foreign banks as the UK prepares to make finance executives personally accountable for misconduct have been rejected by regulators, barely a month before the new regime starts.

Some institutions may not be ready when the Senior Managers Regime, run by the Financial Conduct Authority and Prudential Regulation Authority, comes into force by March 7, advisers warn. The watchdogs will extend little lenience to banks that are late, however, according to people familiar with the matter.