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ABI Review of combined code is on the right tracks

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."


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Last updated 01/07/2016