View more on these topics

FSA to extend SIF regime

The FSA has published proposals that extend the significant influence function regime to apply to more individuals and increase the FSA’s powers to vet and track people as they move role.

The regulator has today issued a consultation paper on effective governance standards within firms.

The FSA plans to introduce nine new significant influence controlled functions including chairman, chairman of risk committee, chairman of audit committee, chairman of remuneration committee, senior independent director, parent entity SIF, finance function, risk function and internal audit function.

It is also consulting on extending the regime to capture more individuals from parent companies who exert significant influence upon a UK regulated firm.

The FSA is proposing transitional arrangements that will see firms submit notification to the regulator identifying which of their approved persons are performing any of the new controlled functions already, within their existing approvals. It says it will not use the notification process to assess the competence of individuals to perform the roles.

FSA’s director of permissions, decisions and reporting Graeme Ashley-Fenn says: “Our more intrusive approach continues to place a great deal of emphasis on governance and therefore the senior management at firms.

“This starts with a firm’s own due diligence. Our experience shows that once a firm gets its corporate governance right, with a strong and effective board, everything else flows from that.”

Following on from Sir David Walker’s review of corporate governance, published in November last year, the FSA says listed banks and insurers are now strongly encouraged to establish board risk committees and appoint top executives as chief risk officers.

FSA managing director of risk Sally Dewar says: “We have been very clear about our more intensive supervisory approach of firms and individuals and our renewed focus on the quality of governance.  

“We were fully supportive of Sir David’s recommendations and this CP sets out how we intend to deliver them through our ongoing supervisory work and authorisation processes.”

The consultation period closes on April 28, 2010. The FSA says it hopes to have final rules in place during the third quarter of 2010.   


Blanchflower calls for MPC to be axed

Former Bank of England monetary policy committee member David Blanchflower has called for the MPC to be disbanded as he believes it is “not fit for purpose”. Writing in the New Statesman magazine, Blanchflower says the recession has been much deeper than it needed to be because the committee was “asleep at the wheel” in […]

MPs want FSA to oversee advice given to councils

MPs say the FSA should regulate the advice given to public sector bodies about managing cash reserves and investments. In a report this week, the communities and local government select committee says the FSA should scrutinise the services provided and the professional independence of companies that offer local authorities treasury management advice. The select committee […]

Phone - thumbnail

Pension Wise — now taking calls…

Those with decent-length memories will recall that in the 2014 Budget statement George Osborne announced the new (and entirely unexpected) pension freedoms. The new rules come fully into force in less than two weeks.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm