Financial sector set for tighter governance

NEW corporate governance guidelines propose sweeping reforms in the governance of banks and insurance companies.

Companies in the financial sector will have to have no fewer than five board members and there should also be a “clear separation” between the roles of chairman and chief executive, the proposals published yesterday by the Financial Regulator, Matthew Elderfield, outlined.

Under the guidelines the number of directorships one person can hold would also be limited as the consultation paper paves the way for tougher corporate governance measures.