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.
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’t, companies risk appointments being delayed or derailed.
Angela Knight of the British Bankers Association welcomed the announcement from the FSA, but called for further clarification.
She said: “It’s good that they’ve outlined what they’re actually doing – but we need more details.”
The CBI also expressed concerns about the FSA’s announcement, saying it was “important that this new approach doesn’t unduly second-guess boardroom decisions.”
FAST FACTS FSA VETTING
&9679; The FSA will vet chairmen, CEOs and CFOs
&9679; It has interviewed 172 candidates since 2008
&9679; Final responsibility lies with the company
&9679; It wants to be engaged in the process early on
&9679; Unwilling firms could see appointments delayed