13th March 2023

CP 153 - Enhanced governance,  performance and accountability in financial services

The regulatory consultation on the draft IAF/SEAR regulations and guidance has been published, and is referred to as “CP 153 - Enhanced governance, performance and accountability in financial services”.

It is proposed that all INEDs/NEDs at in-scope firms are included within the scope of the SEAR.

“Non-Executive Directors, including Independent Non-Executive Directors (collectively INEDs/NEDs), form an integral component of the board of the firm and a fundamental safeguard within a firm’s governance framework as reflected in the relevant Corporate Governance Requirements. Accordingly, it is proposed that all INEDs/NEDs at in-scope firms are included within the scope of the SEAR. The responsibilities for which INEDs/NEDs are accountable will be limited to their non-executive oversight responsibilities. As set out, having carefully considered the advantages and disadvantages of this approach, including the potential impact on recruitment of INEDs/NEDs, we consider that it is consistent with their existing responsibilities under the corporate governance framework and should not impose increased obligations in that regard.”

CLICK HERE to read the full text of CP153.