ABI: Review of combined code is on the right tracks

Tuesday, 1 December 2009 12:00 AM

Responding to the Financial Reporting Council's Review of the Combined Code of Corporate Governance, released today, Peter Montagnon, the ABI's Director of Investment Affairs, said:

"The ABI has always been a strong supporter of a flexible comply-or-explain approach to corporate governance. The Code has worked well in focusing attention on the value of good governance and raising standards in the UK. The review extends this important tradition.

"The proposed amendments highlight some important issues, including director accountability, board evaluation and risk management. The ABI has expressed reservation about the annual election of Chairmen alone, because this can be too blunt an instrument. We will talk to our members about whether they would prefer annual re-election of all directors, and will respond to the consultation in due course.

"We have for some time seen a role for the FRC around the new ISC Code on the responsibilities of institutional shareholders, but it is important that we get the details right. We will be talking to the FRC about how to achieve this. Conditions that undermine the critical mass of support for the Code must not be imposed on investors."

Notes for Editors

1. Enquiries to:
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK's capital. They are the risk managers of the UK's economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.

3. An ISDN line is available for broadcasts.

4. More news and information from the ABI is available at www.abi.org.uk

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