Past and Future of Corporate Governance

Transcription

1 Past and Future of Corporate Governance Sónia Camacho 13 th November 2017 Insurance Financial Planning Retirement Investments Wealth

2 Brief History of Corporate Governance

3 Cadbury Greenbury Hampel UK Combined Code Turnbullll OECD Corporate Governance Principles OECD Corporate Governance Principles OECD Guidelines for Insurers Governance Brief History of Corporate Governance Use of the corporate form (i.e. companies) Major Chartered Companies th Centuries USA Managerial accountability, Board structure and shareholder rights First reference to corporate governance Inclusion in regulatory remit (SEC) Reform 70 s Growing shareholder orientation International focus on corporate governance starts Economic downturn in USA Corporate Governance attracts focus in the UK; Committee on Financial Aspects of Corporate Governance established 90 s UK Prominent corporate failures in the UK Recession Asia Asia Financial Crisis Post WWII Boom Prolonged economic boom Corporations grew rapidly Managed corporations Managers led directors and shareholders followed Retail investor focus on dividends and share price 80 s Political change Support for reform stalled Legal reform push back But, institutional shareholders Shareholder rights starts to emerge as a focus Economists as part of the debate Focus continues predominantly in the USA IAIS Inception 00 s USA good economics USA corporate governance touted as The Model IAIS Insurance Core Principles Past and Future of Corporate Governance 3

4 Brief History of Corporate Governance Past and Future of Corporate Governance 4

5 IAIS Insurance Core Principles

6 Background 6

7 Structure IAIS Insurance Core Principles IAIS Insurance Core Principles Statements Standards Release of first set of ICPs Release of expanded ICPs Various stand-alone principles released Adoption of revised and consolidated ICPs Guidance Past and Future of Corporate Governance 7

8 IAIS Insurance Core Principles Conditions for effective insurance supervision Supervisory system ICP 1 ICP 2-5 Conditions for effective insurance supervision ICP 2 Supervisory objectives ICP 3 Supervisory authority ICP 4 Supervisory process ICP 5 Supervisory cooperation and information sharing ICP 6 Licensing ICP 7 Suitability of persons ICP 8 Changes in control and portfolio transfers ICP 9 Corporate governance ICP 10 Internal control IAIS Insurance Core Principles Supervisory entity On-going supervision Prudential requirements Markets and consumers ICP 6-10 ICP ICP ICP ICP 11 Market analysis ICP 12 Reporting to supervisors and off-site monitoring ICP 13 On-site inspection ICP 14 Preventive and corrective measures ICP 15 Enforcement or sanctions ICP 16 Winding-up and exit from the market ICP 17 Group-wide supervision ICP 18 Risk assessment and management ICP 19 Insurance activity ICP 20 Liabilities ICP 21 Investments ICP 22 Derivatives and similar commitments ICP 23 Capital adequacy and solvency Anti-money laundering, combating the financing of terrorism ICP 28 ICP 24 Intermediaries ICP 25 Consumer protection ICP 26 Information, disclosure & transparency towards the market ICP 27 Fraud ICP 28 Anti-money laundering, combating the financing of terrorism (AML/CFT) 8

9 And Background then 9

10 And then Global Financial Crisis Past and Future of Corporate Governance 10

11 Corporate governance reforms

12 IAIS Main Elements of Insurer Corporate Governance IAIS & OECD Issues Paper on Corporate Governance OECD Guidelines on Insurer Governance And then Global Financial Crisis Review Revised IAIS Insurance Core Principles Precipitated reform across financial services Systemic risk posed by international groups became a focus Past and Future of Corporate Governance 12

13 Revised IAIS Insurance Core Principles Group Supervision Assumptions Themes Enterprise Risk Management Regulatory Convergence Financial and Regulatory Reporting Past and Future of Corporate Governance 13

14 Latest development Click to edit body copy styles OECD Guidelines on Insurer Governance King IV Click to edit body copy styles Click to edit body copy styles Click to edit body copy styles Click to edit body copy styles Past and Future of Corporate Governance 14

15 thank you