Regulator approves of beefed up powers
The Financial Services Authority (FSA) welcomed the publication of Sir David Walker’s final review of corporate governance in UK banks and other financial institutions.
The regulator published the following statement:
Many of the recommendations complement work the FSA is already carrying out, such as the increased focus on the quality of governance and risk management at FSA-regulated firms. The FSA has already strengthened its approach to the approval of individuals who manage and influence firms at a senior level and will publish a further consultation paper on governance and approved persons early next year.
The FSA introduced a remuneration code in August 2009. It comes into effect on 1 January 2010. Sir David Walker has expressed strong support for, and his recommendations are broadly consistent with, the FSA’s existing remuneration code.
The FSA reiterates its commitment to reviewing its remuneration code next year in order to take any international developments into account. This review will also consider whether, and how, to implement Sir David’s wider recommendations on remuneration.
In relation to shareholder engagement, on conclusion of the Financial Reporting Council’s consultation on the ‘Stewardship Code’ the FSA will consult upon a rule introducing a ‘comply or explain’ disclosure requirement for relevant investment management firms.
The FSA continues to participate actively in international fora to ensure that the UK continues to lead the way in setting high standards for governance and remuneration.