Following on from today's FCA policy statement “Independent Governance Committees: extension of IGCs' remit”.
Yvonne Braun the ABI’s Director of Policy, Long-Term Savings and Protection said:
“Good governance is critical for firms’ ESG policies and implementation of investment pathways, but we do not think extending IGCs’ remit is an effective way to achieve this. These new rules add an extra layer of bureaucracy to firms’ governance processes, with little benefit to customers. Firms will now have a dual reporting structure without changing accountability.
Firms have already begun developing pathway solutions for their launch in August 2020, so the expectation that firms will have to have IGCs in place to assess the proposed design of the pathway by April will be challenging.”