Hector Sants, speaking to the SII, outlined changes FSA is making to how it judges the competence of firms’ senior management as well as their probity. He said we need to create effective governance led by individuals with the right attitudes and competence. FSA does not wish to detract from the overall responsibilities of senior management and does not want to create non-executive directors as a competing governance measure. But it wants NEDs to raise their technical skills so they can show competence with regard to risk management, regulation and the business model of the firm. Many will need to work more for the firms and have technical support. Mr Sants explained how FSA’s overhaul of significant influence functions already means interviews for more candidates. Sometimes firms have withdrawn applications following those interviews. FSA will publish the results of its CP on changes to significant influence functions with the Walker corporate governance review.