RegulationCorporate GovernanceInfluencing board appointments puts FSA in firing line

Influencing board appointments puts FSA in firing line

CISI warns FSA that board appointment interference opens the authority up to responsiblity for companies' performance

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

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

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.”

Further reading:

PwC’s
Lehmans fees top £210m

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