In 2005 the FSA undertook a survey of Non- Executive Directors (NEDs) working in the Lloyd’s market. The survey looked at the background of NEDs and in particular their understanding of what is expected from them in terms of the FSA regime.
The FSA considers that NEDs fulfil an important role providing an independent check to a firm’s executive board. However the FSA commented that firms should consider recruiting NEDs with professional backgrounds extending beyond underwriting.
From the responses received the FSA have identified a need for specific regulatory training for NEDs. The FSA, in conjunction with Lloyds, intends to hold future training sessions.