All hail the independent non-executive director

What is the aim of the new guidelines from the Hong Kong currency board?

Strengthen the role of independent non-executive directors and governance

Create rules to avoid another global financial crash

Strengthen the role of executive directors at HK banks

Mark 10 years since the global financial crash

Why are the new guidelines good news for accountants?

Regulators will want to hire accountants as non-executive directors

Accountants can charge more for the services now in demand

Accountants are the ones who are establishing the new guidelines

Accountants with governance expertise will be in great demand by banks

What led to the Hong Kong Monetary Authority drafting new rules?

Chinese regulators required HKMA to review its guidelines

A push from other global regulators to update HKMA governance guidelines

Accountants encouraged HKMA to update guidelines in order to benefit from the work

HKMA said the global crisis had exposed weaknesses at banks

What is expected of independent non executive directors under the new guidelines?

That they should have integrity, objectivity, experience and expertise to fulfil the role

That they have the right personal qualities and commitment for the job

That they must be an accountant, lawyer or banker by profession

That they should be independent and have banking experience

What needs to be done to ensure a healthy pipeline of qualified INEDs?

Banks must ensure a future pipeline

Regulators must train future INEDs

INEDs will train the future pipeline of talent

Adequate training and coaching must be provided to nurture future INEDs

Why has HKMA taken this formal step of updating governance for banks?

Increased competition from other jurisdictions such as Singapore and China

China has required the regulator to do so

Pressure from other global regulators that have updated their governance rules

Banks want tighter rules in order to be seen to be doing the right thing

From 14 December how many INEDs must authorised institutions have on their boards?

Minimum two INEDs

At least one INED

Most board members should be independent non-executives

The chair must be an INED

When might individual independence be questioned for the role of INED?

If a prospective INED has a relationship with the bank or a family member works there

If the prospective INED holds a board position at another institution

If an individual worked at a government or regulatory body five years ago

If the individual used to bank at the authorised institution

What should each AI board have as standard that is distinct from any other committee?

A governance committee

An audit committee

A nominations committee

A gender balanced committee

While INEDs have a duty to ensure banks are successful they also play a role in protecting the interests of -

Ethical overseers and foreign investors

Shareholders, depositors and customers

Regulators and advisers

Staff, INEDs and executive directors

All hail the independent non-executive director

What is the aim of the new guidelines from the Hong Kong currency board?

Why are the new guidelines good news for accountants?

What led to the Hong Kong Monetary Authority drafting new rules?

What is expected of independent non executive directors under the new guidelines?

What needs to be done to ensure a healthy pipeline of qualified INEDs?

Why has HKMA taken this formal step of updating governance for banks?

From 14 December how many INEDs must authorised institutions have on their boards?

When might individual independence be questioned for the role of INED?

What should each AI board have as standard that is distinct from any other committee?

While INEDs have a duty to ensure banks are successful they also play a role in protecting the interests of -

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