BusinessCompany NewsKelly rejects Higgs criticism as ‘disturbing complacency’

Kelly rejects Higgs criticism as 'disturbing complacency'

Claims that the media debate on the Higgs Report was 'starting to lose a sense of porportion' have beenmade by Ruth Kelly, financial secretary to Treasury.

Link: Special Higgs report area

In a speech in Edinburgh to the annual investment conference of the National Association of pension funds Kelly defended the Higgs report after a barrage of criticism this week from UK boardrooms.

Her comments come after a CBI survey this week found an ‘overwhelming majority’ of FTSE 100 chairmen were opposed to recommendations made by Derek Higgs in his report published in January on the role and effectiveness of non-executive directors.

Kelly said the report was not an ‘intrusive rule book’ and critics has demonstrated ‘disturbing complacency’ for UK corporate governance. She claimed that the report was ‘seen in the context of Enron and its backwash’ and that it is more ‘about promoting shareholder value as it is about trying to prevent wrongdoing’.

Kelly also defended Derek Higg’s consultation process saying: ‘Derek consulted widely and sought comments on his proposals from the main representing bodies including the CBI’. She also made it clear that ‘the code is and should remain a statement of best practice’ and that the Financial Reporting Council is ‘hearing and listening carefully to all comments’ before it makes a final decision on the form of a new code on corporate governance.

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

12m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor