Directors limited to three boards

DIRECTORS of financial institutions will no longer be able to sit on more than three boards, and they must bring expertise to their positions, according to European Commission proposals to regulate corporate governance.

The Commission also proposes having a single centralised supervision at European level of Credit Rating Agencies, a system of fines of up to 20% of their income and a possible ban on the national office of a CRA.

As part of a major review of how banks and insurance companies are managed, they have issued a Green Paper with a range of questions aimed at reducing the risks of bankruptcy and ensuring greater transparency and less conflict of interests.