The Institute of Chartered Secretaries and Administrators (ICSA) has published revised Guidance on Terms of Reference for Audit, Remuneration and Nomination Committees. The ICSA has also published new Guidance on Terms of Reference for Risk Committees.
The revised guidance for Audit, Remuneration and Nomination Committees includes the removal of the restriction on extending appointments to the Committee for two further periods of three years and the Nomination and Remuneration Committees are required to meet less frequently.
Other changes to the Audit Committee guidance include a new obligation to review systems and controls for the prevention of bribery, money laundering and the company's compliance function. In relation to the Nomination Committee, the Guidance requires the committee to take account of diversity and gender issues when considering the size and composition of the board.
The creation of a Risk Committee is recommended for FTSE 100 banks and other financial institutions. The Guidance provides that the Risk Committee should consider the risk exposure and strategy of the company and report on it in the annual report.
For further information see: www.icsa.org.uk