- "We have learned from the banking crisis the importance of good corporate governance" - I actually thought we learned about the folie a deux of rancid corporate governance mixed with an intimidated and unskilled regulator, and the inquest seemed to support that.
- New powers on fitness and probity (for all financial services) will come in later this year (prohibitions, suspensions and removals of execs and non-execs)
- Law containing new powers has been drafted in a way that "grandfathers in" existing board members - regulator however will retrospectively review all bailed-out bank board members if they haven't been replaced since the crisis
- Anticipating legal challenges from said executives!
- Invites said executives to "take up the Minister's (Michael Noonan's) request to act in the public interest" and jump before being pushed
- PRISM framework for a tiered supervisory approach will be rolled out towards the end of this year, and more fully next year - He is "sure it will take a while to bed down" - I'm not sure how much leeway that gives any non-conformists however!
Tuesday, 26 July 2011
Elderfield speech to the MacGill Summer School - governance angle
Matthew Elderfield's speech this week to the MacGill Summer School was on the future of Irish banking, but has a heavy corporate governance flavour, so I picked out the pieces with cross-over relevance for Insurance;