Businesses faced a particularly difficult year in 2014 with major banks falling foul of the regulators due to trading and system failures; retail giants dealing with financial holes; and implementation of new remuneration and bonus clawback rules.
It seems this trend of heavy regulation, implementing new rules and regulations and closer scrutiny – by regulators, media and the public – is set to continue throughout 2015.
Governance + Compliance approached a number of industry professionals for their opinions on the most significant issues that companies will likely be tackling in 2015.
The challenges associated with strategic reporting are likely to remain high on the agenda. A particular issue is the new requirement of putting together a viability statement within the strategic report, as part of changes to the Corporate Governance Code made by the FRC.
Delving further into sector and company specifics, we asked the industry experts which sectors in particular they thought would face difficulties in the next 12 months.
Not surprisingly financial institutions were mentioned by many. Mala Shah-Coulon said that ‘the financial services sector is likely to have a tough year in 2015, as new capital requirements and ring-fencing for banks, and increased regulatory interventions in the insurance sector, will make their mark.’
GoodCorporation’s Director of Business Ethics Advisers Leo Martin also commented on the increased pressures to be felt by the banking sector: ‘[this] sector is … going to bear the brunt of the challenge on directors’ pay from the updated UK Corporate Governance Code. The new Banking Standards Review Council will also push banks to make sure that they are measuring more convincingly their ethical culture and leadership.’
New consumer and markets watchdog waiting to be named GoodCorporation comments on the need to focus on the bad selling as well as bad products in the financial services sector The Guardian – January 25 2011