As will be known, the FSA has always attached importance to sound corporate governance within authorised firms and has looked to Non-Executive Directors (NEDs) to provide a necessary degree of challenge (for example see Regulatory Roundup 26).
The FSA has published (consultative) guidance setting out to firms its expectations of NEDs. The guidance includes examples of various scenarios such as ‘strategy setting’ and ‘crystallised issues’.
The guidance is not only aimed at firms that are directly involved with retail clients but also those firms which have a role in providing retail services or products – an example given is a provider of institutional funds that may be used by retail pension schemes.
