The Financial Stability Board (FSB) has published a thematic review of FSB members’ compliance with the G20/OECD principles of corporate governance for regulated financial institutions (across all sectors).
The Thematic Review on Corporate Governance (PDF 1.09 MB) review highlights some divergences across FSB members, and makes a number of recommendations.
Most of the identified divergences across countries are not very important or interesting – perhaps the most significant is that although the G20/OECD principles state that separation of the Board Chair and the CEO is good practice, no such requirement or guideline exists in the US, Japan, Korea, Mexico or Spain.
The recommendations are also fairly low-key, although they may indicate where the FSB and some national supervisors may focus their efforts over the next year or so. They include:
Although this thematic review contains no immediate or specific new requirements, firms might usefully consider the implications for them of any future regulatory initiatives based on the recommendations, in particular the first six recommendations listed above.
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