IMA has responded to the Walker review on corporate governance. It had four specific comments and the overall comment that there should not be a “one size fits all” approach to governance within financial institutions:
- although boards should have overall responsibility for risk management, complex groups may need to delegate to subcommittees if there are too many demands on their audit committee;
- there should be stronger powers for shareholders on remuneration in the Combined Code;
- NEDs and the chair of a board should have sector-specific skills; and
- while the “comply or explain” framework that allows institutional investors to question boards’ actions is good, there are lessons from the crisis that show how it could work better.