On 8 August 2016 the Financial Stability Board (FSB) launched a peer review. The peer review focuses on the implementation of the G20’s Principles of Corporate Governance (Principles) and in particular, how members have applied the Principles to publicly listed and regulated financial institutions. In summary, the Principles cover areas like governance, frameworks, disclosure and transparency. The objectives of the peer review include the following:
- identifying effective practices, areas of progress and weak spots
- informing and updating the Organisation for Economic Co-operation and Development’s current review of Assessment Methodology
- to flag areas where further work could be done to promote the effective governance of financial institutions.
Feedback has been welcomed from financial institutions, consumer associations, stakeholders and industry. Areas where comments are anticipated include:
- how the corporate governance framework can promote a fair market and the efficient allocation of resources
- ways in which the corporate governance framework recognises the rights of stakeholders and encourages co-operation between financial institutions and other stakeholders
- how corporate governance can ensure the strategic guidance of the financial institution in question and the monitoring and management of its board.
The peer review will be published in 2017.