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| Companies Act means directors share responsibility, FSA says |
UK firms have raised concerns that the city watchdog is being too heavy-handed in its approach to regulation with regard to corporate governance, prompting a greater need than ever for businesses to ensure Companies Act compliance.
Oliver Lodge, an independent regulatory consultant and former regulator of the Financial Services Authority (FSA), told the Financial Times that heightened scrutiny of non-executives is beginning to trouble some companies.
In the past, the FSA would not hold non-executive members responsible for parts of the business they had no direct knowledge of, but Mr Lodge believes the authority is looking to scrap this guidance to extend the reach of its power over business.
However, the FSA countered that all directors share a "collective responsibility", as outlined in the Companies Act, according to the newspaper.
The financial services regulator recently contacted 38,000 people to warn them that they could be the target of a wide-ranging "boiler room" share scam. |
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