UK: Financial Services Regulatory Initiatives Forum - Regulatory Initiatives Grid published

The third regulatory initiatives grid has been published by the chairs of the Financial Services Regulatory Initiatives Forum: see here. The grid provides a timeline for current initiatives - over 120 - from organisations including HM Treasury, the Bank of England, Financial Conduct Authority and Financial Reporting Council.  

UK: Government consultation - insolvency and corporate governance

The Government has published a consultation paper titled Insolvency and corporate governance: see here (pdf). The paper contains proposals the aim of which, to quote the Government, is to "reduce the risk of major company failures occurring through shortcomings of governance or stewardship, and to strength the responsibilities of directors of firms when they are in or approaching insolvency" (p. 5).

Amongst the proposals contained in the paper is one designed to better hold parent company directors to account in respect of the sale of an insolvent subsidiary that has an adverse impact on the interests of the subsidiary's creditors. And, amongst the questions asked, is this one: are stronger governance and transparency measures required in relation to the oversight and control of complex group structures?  The paper also asks: what more could be done through a revised Stewardship Code or other means to promote more engaged stewardship of UK companies by their investors, including the active monitoring of risk? It also seeks views on this question: whether some directors are obtaining and using professional advice without a proper awareness of their duties as directors, and in particular the requirement to exercise independent judgement.

UK: PLSA discussion paper - 'Good governance - how to get there'

The Pensions and Lifetime Savings Association has published a discussion paper titled 'Good governance - how to get there': see here (pdf). The paper calls, amongst other things, for a rebalancing of the regulatory priorities of the Pensions Regulator, with a stronger emphasis on the scrutiny of board appointments and effectiveness.

UK: new code of practice for defined contribution pension schemes

A new code of practice for defined contribution pension schemes, published by the Pensions Regulator and setting out the standards that pension trustees should meet to comply with legislation, came into force yesterday: see here (pdf). The code applies to all schemes offering money purchase benefits and has sections dealing with the trustee board, scheme management skills, investment governance and value for members.