Central Bank publishes Consultation Paper on Corporate Governance Requirements for Investment Firms
The Central Bank has published a consultation paper on Corporate Governance Requirements for Investment Firms (CP No. 94). The paper proposes to introduce a number of corporate governance requirements for investment firms relating to:
Minimum board size (at least 3 directors):
The composition of the board (a majority of non-executive directors, subject to certain exemptions);
The role and responsibilities of the Chairman;
The role and responsibilities of the CEO;
The frequency of board meetings (at least four times per calendar year and at least once in every six month period);
The role and composition of the risk committee;
The role and composition of the audit committee.
In addition to the above "core requirements", additional requirements are proposed for firms designated as High and Medium High Impact under PRISM; low risk firms will be encouraged to adopt these additional requirements. Responses to the consultation paper should be submitted to the Central Bank no later than 5 August 2015.
EU AND INTERNATIONAL DEVELOPMENTS
FCA publishes Discussion Paper on MiFID II
The Financial Conduct Authority (FCA) has published a discussion paper on MiFID II (DP 15/3), in advance of a formal consultation on the implementation of MiFID II in the UK. The discussion paper deals with the following matters around MiFID II:
Application to insurance-based investment products and pensions;
Treatment of structured deposits;
Receipt of commissions and other benefits for discretionary investment managers;
Professional client business (in particular client categorisation and the treatment of local public authorities and municipalities);
Application of remuneration requirements to sales staff and advisers to non-MiFID firms;
Recording telephone conversations and electronic communications;
Costs and charges disclosures;
Revised inducements standards;
Complex and non-complex products and the application of the appropriateness test.