Activities of Emma McCLARKIN related to 2010/2303(INI)
Shadow opinions (1)
OPINION on corporate governance in financial institutions
Amendments (7)
Amendment 9 #
Draft opinion
Paragraph 2 a (new)
Paragraph 2 a (new)
2 a. Believes that a proportionate 'comply or explain' approach is suited to the area of corporate governance because of its ever evolving nature; a prescriptive approach such as that implemented in the US under the Sarbanes-Oxley Act proved to be completely ineffective in protecting US financial institutions from the financial crisis and instead resulted in an increase in compliance costs, in particular for SMEs, reducing competitiveness and hampering the creation of new listed companies; however, stresses that a 'comply or explain' approach must be complemented by appropriate regulatory oversight, more intrusive checks by national and EU supervisors into compliance, and certain specific legislative requirements;
Amendment 10 #
Draft opinion
Paragraph 3
Paragraph 3
3. Stresses that a well-governed company should be accountable and transparent to its shareholders and stakeholders; reaffirms that directors of financial institutions have to take account of their institution's long- term interests when taking decisions; this can be accomplished by a legislative requirement for every regulated financial institution in the European Union to describe its business model in its annual report with an explanation of the board's risk appetite and understanding of the risk inherent in delivery of the business model, the report should further include a description of the steps the board has taken to ensure these risks are overseen and managed, and of how remuneration policy is aligned to the delivery of the business model and the management by executives of the risk involved;
Amendment 15 #
Draft opinion
Paragraph 5
Paragraph 5
Amendment 19 #
Draft opinion
Paragraph 5 a (new)
Paragraph 5 a (new)
5 a. Stresses that risk is intrinsic and necessary in the financial sector in order to provide liquidity, foster competitiveness and help deliver economic growth and jobs; a thorough understanding and appreciation by the board of risk is absolutely vital in order to avoid a future financial crisis;
Amendment 21 #
Draft opinion
Paragraph 6
Paragraph 6
6. Calls upon the Commission to propose measureslegislation concerning mandatory board risk committees or equivalent arrangements and rules on their composition and function;
Amendment 24 #
Draft opinion
Paragraph 7
Paragraph 7
7. Encourages institutional shareholders to engage in a dialogue with financial institutions on improving corporate governance and risk management with a view to the long-term viability of the financial institution; encourages in this respect institutional investors to adhere to an international code of best practice; calls for legislation requiring all those authorised to manage investments on behalf of third parties in the EU to state publicly whether or not they apply and disclose against a stewardship code, if so which one and why, and if not why not; suggests that the UK’s Stewardship Code can be regarded as a suitable model for a uniform EU code for institutional investors;
Amendment 27 #
Draft opinion
Paragraph 8
Paragraph 8
8. Stresses the importance of a strict remuneration policy as foreseen in the Capital Requirements Directive (CRD III) and Solvency II; calls upon the Commission to publish an evaluation report in 2014.