The PRA has published Consultation Paper 18/5: Corporate governance: Board responsibilities (CP18/15). CP18/15 is relevant to all PRA-regulated firms and seeks views on a draft supervisory statement which identifies some key aspects of good board governance to which the PRA attaches particular importance in the conduct of its supervision. However, the supervisory statement is not intended to be a comprehensive guide to good corporate governance and there are other sources including the Financial Reporting Council’s Corporate Governance Code.

The draft supervisory statement provides guidance on the following:

  • setting strategy;
  • culture;
  • 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;
  • remuneration;
  • subsidiary boards; and
  • board committees.

The deadline for comments on CP18/15 is 14 September 2015.

View Corporate governance: Board responsibilities – CP18/15, 21 May 2015