kingman review

Governance Watch - Issue 52

Governance Watch - Issue 52

Change and Evolution

Beware the Ides of March, as they can prove to be treacherous. At a time when Britain appears ever more deeply mired in political stasis over the Brexit vote, we have also seen a steady roll-out of government reforms to improve corporate governance and the running of our businesses. The aim is to restore trust in business and its place in society, although ironically the Edelman Trust Barometer of 2019 shows that the British public trusts business far more than it trusts the government – as mentioned in the last Governance Watch.

If these reforms are now seen not to deliver real change, the threads of that trust will scatter on the chilly wind.

Governance Watch - Issue 50

Governance Watch - Issue 50

Diversity, Inclusion and Progression

We are more than half way into January, and when it comes to politics, the New Year feels very much like the old one. Facing multiple challenges around technological transformation, skills shortages and changing consumer aspirations, much of British business has been tearing its hair out on the uncertainty around Brexit for over two years. During that period the UK government has, in its pursuit of best practice and the lure of Britain for business and investment, taken many steps to raise the bar on corporate governance. 

Governance Watch - Issue 46

Governance Watch - Issue 46

Conflict of interest

The Patisserie Valerie saga, covered in the last Governance Watch, is the story that just keeps on giving on corporate governance. 

The Chief and CFO had “second helpings of shares despite no explanation from the chain” reported the Financial Times, following up with a report about £2.9m made from bonus share schemes, and then the company’s admission that it had awarded these bonuses without informing shareholders.  

Governance Watch - Issue 44

Governance Watch - Issue 44

Regulation: No ‘race to the bottom’

The uncertainty around Brexit has resulted in heightened media scrutiny of contrasting comments about what might happen to regulation in order to keep Britain “competitive.” 

Governance Watch - Issue 43

Governance Watch - Issue 43

Action, Not Words

This is the new mantra, aimed at British business and being chanted at it from all directions: ‘Action, Not Words’ (as noted in the last Governance Watch) when it comes to gender progression, ethnic representation and inclusion. 

Governance Watch - Issue 41

Governance Watch - Issue 41

Challenges

As we approach the end of a summer of discontent in the UK, business confidence is at its lowest in 2018, according to a survey by the Institute of Directors (IOD). The risks of a no-deal Brexit range from the impact on the NHS and the entire pharmaceutical industry to implications for more than €100 bn of European bank debt issued under English law. A ‘no-deal’ impact paper on financial services is among those listed to be published on Thursday. 

Governance Watch - Issue 40

Governance Watch - Issue 40

Kingman Review

The consultation period for the independent review led by Sir John Kingman into the Financial Reporting Council (FRC), the UK’s accounting regulator and corporate governance watchdog, has just closed. It is intended to help ensure that the FRC’s role and powers are fit for the future and has come after years of accountancy in the media headlines for all the wrong reasons. 

Governance Watch - Issue 38

Governance Watch - Issue 38

Data

There is irony in the timing of a £500,000 fine levied on Facebook today by the UK Information Commissioner’s Office (ICO) for two breaches of the Data Protection Act in the scandal involving Cambridge Analytica. The breaches occurred before the latest European General Data Protection (GDPR) came into effect in May, therefore the £500,000 cap is one set by the UK’s Data Protection Act 1998.

Governance Watch - Issue 35

Governance Watch - Issue 35

Conflict of interest

It’s a recurring theme, and one that needs urgently to be addressed to resolve the many issues around better corporate governance in the United Kingdom. To even attempt to talk about ‘restoring trust in business’ without doing that appears to demonstrate deep underlying commitment to the maintenance of the status quo.

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