views

FSA outlines new rules to vet top execs at financial firms

THE Financial Services Authority wants to vet senior job candidates when top banks draw up shortlists -- not after a preferred candidate has been identified -- the City watchdog said yesterday. <br /><br />In a letter to 5,000 chief executives of financial institutions, the Financial Services Authority said it expected to be engaged early in the recruitment process.If it isn&rsquo;t, companies risk appointments being delayed or derailed. <br /><br />Angela Knight of the British Bankers Association welcomed the announcement from the FSA, but called for further clarification. <br />She said: &ldquo;It&rsquo;s good that they&rsquo;ve outlined what they&rsquo;re actually doing &ndash; but we need more details.&rdquo;<br /><br />The CBI also expressed concerns about the FSA&rsquo;s announcement, saying it was &ldquo;important that this new approach doesn&rsquo;t unduly second-guess boardroom decisions.&rdquo;<br /><br /><strong>FAST FACTS </strong> FSA VETTING<br />&9679; The FSA will vet chairmen, CEOs and CFOs <br /><br />&9679; It has interviewed 172 candidates since 2008<br /><br />&9679; Final responsibility lies with the company<br /><br />&9679; It wants to be engaged in the process early on <br /><br />&9679; Unwilling firms could see appointments delayed