Among other requirements, this enshrines the principles of independent Board members; the need for timely, accurate, and comprehensive disclosure of the control frameworks which financial institutions rely upon; and the importance of Board level oversight of the activities of the organization. It emphasizes accountability, and sets out the standards which financial institutions are required to comply with.
Effective governance from the top provides comfort to investors that their interests are of critical importance. There are clear standards for the ring-fencing of clients’ money. There have also been a number of improvements in the regulations relating to control frameworks in general, and risk management practices in particular. The rules relating to public disclosure and transparency have been continually and significantly improved.