PRA has published a supervisory statement and accompanying policy statement on corporate governance, particularly on board responsibilities. The statement identifies aspects of governance which PRA attaches particular importance to in its supervisory role. PRA notes that it is not intended to be a comprehensive guide to good corporate governance. The statement covers:

  • setting strategy;
  • culture;
  • risk appetite and risk management;
  • board composition;
  • the respective roles of executive and non-executive directors (NEDs);
  • knowledge and experience of NEDs;
  • board time and resources;
  • management information and transparency;
  • succession planning;
  • remuneration;
  • subsidiary boards; and
  • board committees.

(Source: PRA board responsibilities policy statement and PRA board responsibilities supervisory statement)