Influencing board appointments puts FSA in firing line

The FSA has been warned that it would find itself responsible for banking
failures if it becomes embroiled in influencing which directors join their

The warning comes from the
Institute for Securities & Investment
, which says that the FSA
risks becoming a “shadow director” of financial institutions, reported the

CISI chief executive Simon Culhane said: “By becoming so involved in the
approval process, the FSA risks not only becoming a shadow director but also its
[own] reputation.

“If a company whose key people were considered in detail before approval by
the FSA subsequently fails, then there is an implied level of responsibility on
the FSA.”

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