PRA publishes consultation on of board responsibilities

The Prudential Regulation Authority has published a consultation on board responsibilities (CP18/15). The consultation seeks views on a draft supervisory statement to identify some key aspects of good board governance for boards to consider and to which the PRA attaches particular importance in the conduct of its supervision. It is not intended to be a comprehensive guide to good corporate governance.

The draft statement complements the individual accountabilities which the PRA is introducing through the Senior Managers and Senior Insurance Managers Regimes. It also provides guidance on the PRA's expectations relating to:

  • setting strategy;
  • culture;
  • risk appetite and risk management;
  • board composition;
  • the respective roles of executive and non-executive directors;
  • knowledge and experience of non-executive directors;
  • board time and resources
  • management information and transparency;
  • succession planning;
  • remuneration;
  • subsidiary boards; and
  • board committees.

The consultation closes on 14 September 2015.