This consultation paper seeks views on a draft supervisory statement which draws on the Prudential Regulation Authority’s (PRA) regulatory experience to identify some key issues for boards to consider, and to which the PRA pays close attention in the conduct of its supervision. It is not intended to be a comprehensive guide to good corporate governance.
The consultation paper is relevant to all PRA-regulated firms.
The draft statement underscores the collective responsibilities shared by board members, and as such, complements the individual accountabilities which the PRA is introducing through the Senior Managers and Senior Insurance Managers Regimes. It provides guidance on the PRA’s expectations relating to:
- Setting strategy
- Risk appetite and risk management
- Board composition
- The respective roles of executive and non-executive directors
- Knowledge and experience of non-executive directors
- Board time and resources
- Management information and transparency
- Succession planning
- Subsidiary boards
- Board committees
The consultation closed on 14 September 2015.
Please address any comments or enquiries to CP18_15@bankofengland.co.uk.
Corporate governance: Board responsibilities - CP18/15