UK: FSA sets out important governance proposals

The Financial Services Authority has published a consultation paper titled Effective corporate governance (significant influence controlled functions and the Walker review): see here (pdf). The consultation paper sets out important changes to the framework governing individuals performing significant influence controlled functions - e.g., directors - and other changes to the approved persons regime.

The paper also contains guidance on the FSA's more intrusive approach and its expectations in relation to non-executive directors of regulated firms and information on how the FSA proposes to implement some of the Walker review recommendations regarding, e.g., the establishment of board risk committees and the appointment of chief risk officers. There is also information concerning the FSA's role with regard to the proposed Stewardship Code.