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Watchdog outlines post-recession corporate governance policies

Published on 4 Mar 2010 under category: legal

The industry watchdog has outlined its vision of what constitutes good governance, following the UK's narrow exit from the global financial crisis.

In a speech given at the Building Societies Association yesterday (March 3rd) by the Financial Service Authority's (FSA) Graeme Ashley-Fenn, the industry watchdog made its case for its supervisory enhancement programme.

Mr Ashley-Fenn said that the recession had made the FSA more aware of how firms can fail.

In reponse to this, the FSA had changed its own approach: "We now have a much greater willingness to make judgements, for example, about individuals performing key roles and the sustainability of business models of firms. We will and have intervened where we have concerns."

The regulator's overall aims were now to target the "behaviour and culture" in firms to ensure that senior management are driving good practices and that these are being reinforced by "effective corporate governance and the role of the boards".

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