Corporate governance is the set of processes, regulation, codes of practice, customs, policies, laws, and institutions affecting the way a business or non-business entity (The Corporation) is directed, administered or controlled.
Corporate governance also includes the relationships among the many stakeholders involved and the goals for which the corporation is governed.
In FSA authorised organisations, the main external stakeholder groups are customers, shareholders, debt-holders, trade creditors, suppliers the FSA itself and communities affected by the firm’s activities. Internal stakeholders are the board of directors, executives, and other employees.
From a regulatory aspect, this will include standard setting, compliance, HR, competence, risk management, business planning, the laying down of procedures and generally how these things are recorded and documented, supervised and how failure or non-achievement is addressed.
"Effective corporate governance is about the manner and relationships of good business practice and how these can generate profit. It covers wide ranging issues and may be described as an internal system that includes processes, customs and laws designed primarily to protect the interests of shareholders and other stakeholders through a complex association of structures and inter-personal relationships."
- Tim Street, RWA Group
RWA have written an introductory guide to Corporate Governance, looking at:
- The Benefits of a Sound Structural Framework and the Repercussions of Failure
- Corporate Governance and the SYSC Common Platform
- Risk Control & Compliance
- Building a Compliance Regime
This guide is free to all brokers and if you would like a copy please send an email to This e-mail address is being protected from spambots. You need JavaScript enabled to view it and we will send you a copy.
If you would like more information on how RWA can help your business better understand Corporate Governance then please contact us.
