FSA relaxes non-exec recruitment scrutiny – The Financial Services Authority (FSA) is to relax its investigations into prospective non-executive recruits to banks and other financial services companies after complaints about the procedure, the Financial Times reports.
The FT said firms had complained the process was making it harder for them to make non-exec appointments.
It said the industry had noted a share drop-off in the number of applications for board posts at financial groups that have been called for interview by the FSA.
The report said the change in approach was a “marked shift” from the line taken after the collapse of Lehmans and the government rescue of RBS in 2008, after which the FSA examined all board room candidates.
These candidates were subject to interviews by a panel of financial industry grandees. The report added many people withdrew their applications to become non-executive directors at some of the UK’s largest financial services companies.
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