The Commission has an important role in establishing common standards upon which Member States can build which will benefit the EU as a whole.
The starting point should be the already existing framework of Directives - both in the areas of company law and securities law - and the Commission Recommendations on directors' remuneration and the role of independent directors.
The Commission also has an important role in encouraging individual Member States to aspire to high standards of corporate governance by spreading best practice which can be used by Member States in a way most appropriate to each.Overall, given the existing Directives and framework of regulation and codes used in different Member States the primary objective should be to identify ways of enhancing the effectiveness of the current framework rather than to impose new requirements that would fundamentally change the underlying philosophy.
It is essential; however, that the Commission should ensure that there is sufficient flexibility to accommodate the very wide range of companies across the EU with greatly differing needs based on cultural norms and practices. A prescriptive approach should be avoided. Instead it should follow an approach based on principles which is outcome focussed.
Y, en todo caso, no arregles nada que no hayas demostrado, primero, que está roto y que tú lo puedes arreglar:The UK Government is committed to ensuring that there is a robust corporate governance framework in place, and would be in favour of enhancing or improving corporate governance in areas where there is clear evidence that it has failed or needs to be improved.
Any proposals for changes to, or additional, EU regulation in this area should have a clear rationale and be supported by evidence which demonstrates the problem that exists and that the proposal will solve it.
There should also be a clear explanation why EU level intervention is needed. A detailed Impact Assessment should be carried out clearly identifying the costs and benefits of any proposed changes.
In particular it must be recognised that the set of problems facing financial institutions, and the challenge of identifying measures to effectively mitigate the risks to consumers, shareholders and society as a whole of such institutions failing, is specific to that industry. The issues faced by non-financial listed companies are not the same, and great caution should be exercised before applying the same analysis of problems and solutions to non-financial companies as to financial institutions.