The Financial Regulator has published a consultation paper on "Corporate Governance Requirements for Credit Institutions and Insurance Undertakings".
The paper attempts to align corporate governance requirements with recent international regulatory initiatives in the governance field and proposes minimum standards that credit institutions and insurance undertakings will be expected to meet in this area.
The Financial Regulator is proposing to, inter alia:
Impose requirements in terms of the minimum number of directors on Boards;
Limit the number of directorships which directors may hold so as to ensure that they can comply with the expected demands of Board members of an institution;
Require that Board membership is reviewed at a minimum every 3 years;
Require clear separation of the roles of Chairman and CEO and preclude an individual who has been CEO, director or senior manager during the previous five years from becoming Chairman of that institution;
Set out clearly the role of the independent non-executive directors;
Require the Board to set the risk appetite for the institution and to monitor adherence to this on an ongoing basis;
Set out the minimum requirements for Board committees; and
Require annual confirmation of compliance to the Financial Regulator.
Share your views on this paper by posting them to the members' discussion forum ("General Discussion - SAI Members") or by emailing the Society (we will then post them to the forum on your behalf, unless you request otherwise).