Managers and traders to face new tests
In the aftermath of the financial crisis, up to 2,000 traders and managers could face extra checks and interviews by the financial watchdog to assess if they are fit for their jobs, according to reports.
Traders, bankers and managers with significant influence in their companies are set to face the tests, the Financial Times claims.
They include senior professionals at the largest 40-50 banks, insurers and other institutions supervised by the Financial Services Authority (FSA), the news provider said, citing unnamed sources.
The FSA could announce as early as today (July 27th)that institutions will have up to six months to identify senior officials who carry out roles that might expose their company to significant risk, or who exert significant influence, and test their management skills.
The watchdog will then examine their experience and record and could ask to interview them to ensure they are fit for the role, according to the news provider.
A former head of HBOS recently said that the power of chief executive officers must be reined in, claiming they have 'life and death' power.
Paul Moore was ousted from his post of risk manager in 2004 after he told managers that the bank's growth strategy threatened financial stability.
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Comments
Are these tests going to be done before they are hired or after? I mean can you test someone that's already in a job?
Sounds like the equivalent of an MOT?! Aren't their senior managers doing this as a matter of course?
Isn't it time the system went in for some much needed repair? Due diligence and oversight long ago slid out the window. No one was watching.
A dramatic change swept through all of North America's boardrooms over the past 30 years. It is one of the underlying causes of the headache the economy is now feeling, but more importantly, it has resulted in the general feeling of "disconnect" by most Americans from the billions in bonuses being paid to too many on Wall Street who produce absolutely Nothing.
Time to send them a letter .....
http://pacificgatepost.blogspot.com/2008/03/letter-to-ceos-of-fortune-10...
...... been there, done that, it's Really needed.
I don't really get this. Surely half of the problem with the credit crunch was that the watchdogs didn't have a clue what the finance sector were up to and how dodgy it all was. Now we expect them to say what's a good manager and what isn't?