In February of this year Sir David Walker, ex-Morgan Stanley Chairman, was asked by the UK government to review the recent financial crisis and to put forward guidelines for effective corporate governance of UK banks and other financial institutions (BOFIs).
Importantly, whilst the Walker Review concentrates on BOFIs, if implemented, it is likely to be incorporated into the Financial Reporting Council's Combined Code (an existing voluntary "comply or explain" code for listed companies) and thus become the corporate governance standard for listed companies in every industry sector.
Sir David made 39 best practice corporate governance recommendations in the Walker Review, which was published in July. The recommendations are the subject of consultation until October 1 and his final recommendations are due to be published in November.
General reaction
The Walker Review recommendations are sound. Whilst the dangers of an unrestrained appetite for risk have recently been exposed this does not necessarily...