FSA consults on new UK financial sector corporate governance rules

The Financial Services Authority (FSA) has issued a consultation paper on effective governance standards within UK financial sector firms.

The proposals implement the FSA-specific recommendations in Sir David Walker’s review of corporate governance published in November last year. Where appropriate, listed banks and insurers are now strongly encouraged to establish board risk committees and appoint top executives as chief risk officers.

Sally Dewar, managing director of the FSA’s risk business unit, said: "We have been very clear about our more intensive supervisory approach of firms and individuals, and our renewed focus on the quality of governance. We were fully supportive of Sir David's recommendations and this consultation paper sets out how we intend to deliver them through our ongoing supervisory work and authorisation processes."

The consultation period closes on 28 April 2010 and the FSA hopes to have final rules in place during the third quarter of 2010.

Read the consultation paper (PDF).

•Date: 29th Jan 2010 • Region:UK •Type: Article •Topic: Financial sector BC
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