The Financial Services (Banking Reform) Bill received its second reading in the House of Commons earlier this week: see here. The Bill begins the committee stage next week and amendments have already been tabled. Amongst those tabled yesterday - available here or here (pdf) - are several relating to the governance of ring-fenced banks. One amendment sets out a requirement for the Secretary of State to provide by secondary legislation that shareholder approval is required for the appointment of remuneration consultants. Another amendment sets out requirements regarding the composition of the ring-fenced bank's board but is not well drafted: "Half of the board of directors of the ring-fenced body, both executive and non-executive, will be made up of independent persons". Is the intention to require half exactly or (more likely) at least half? Do the words "both executive and non-executive" add anything to the amendment?
Friday, 15 March 2013
UK: Financial Services (Banking Reform) Bill - committee stage amendments tabled
The Financial Services (Banking Reform) Bill received its second reading in the House of Commons earlier this week: see here. The Bill begins the committee stage next week and amendments have already been tabled. Amongst those tabled yesterday - available here or here (pdf) - are several relating to the governance of ring-fenced banks. One amendment sets out a requirement for the Secretary of State to provide by secondary legislation that shareholder approval is required for the appointment of remuneration consultants. Another amendment sets out requirements regarding the composition of the ring-fenced bank's board but is not well drafted: "Half of the board of directors of the ring-fenced body, both executive and non-executive, will be made up of independent persons". Is the intention to require half exactly or (more likely) at least half? Do the words "both executive and non-executive" add anything to the amendment?
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