Approved extension

Recent high profile failures at financial institutions (both in the UK and almost everywhere else) have highlighted the importance of effective corporate governance, and in particular the role of non-executive directors. Ian Mason of Barlow Lyde & Gilbert considers the FSA’s response.

Ian Mason is a Partner in Barlow Lyde & Gilbert LLP and heads the Financial Services and Regulatory team: + 44 (0)207 643 7265, imason@blg.co.uk.

The Chancellor, Alistair Darling, said in a recent session with the House of Lords Economic Affairs Committee,“I’m pretty clear that if you haven’t got the front line right, you wonder how on earth you get anything right.” Mr Darling indicated that the Government will be publishing a White Paper in the Spring, which will look at strengthening the ability of non-executive directors (NEDs) to hold executives to account. The perception at present is that a dominant chief executive may be able to run virtually unchallenged with a flawed business model.