"This sends a clear message to the industry that the FSA means business. Their proposals are consistent with those of Sir David Walker in his review - but are even wider-reaching in that they put heavy emphasis on personal accountability at senior levels and extend to institutions and individuals that were not encompassed by the review. Some aspects will even extend to foreign holding companies that own UK-based regulated companies.
"The FSA is putting personal accountability firmly at the heart of its approach. The proposals will ensure that non executives who act as chairmen of key committees will be subjected to the rigours of the approval regime and will be challenged during the supervisory review process.
"The proposals also show the FSA increasing their requirements and expectations of Chief Risk Officers and risk control functions. The FSA has indicated here that its approach towards testing the effectiveness of governance within firms will be accorded a high level of priority.
See full Press Release.
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