PERIODIC REVIEW AND ASSESSMENT OF A BOARD'S EFFECTIVENESS

JERSEY - PERIODIC REVIEW AND ASSESSMENT OF A BOARD'S EFFECTIVENESS TO MEET THE JFSCs REQUIREMENTS

In March 2018, The JFSC Codes of Practice were updated with a requirement that all aspects of a Jersey registered [regulated] person's corporate governance arrangements be subject to regular review. Further, a periodic self-assessment or external assessment of the board's effectiveness is a critical part of this process.

Board effectiveness

Fundamentally, it is for a Jersey registered [regulated] person's [RP] board to decide on the governance arrangements most appropriate to its circumstances. However, an RP must apply the principles and rules of the JFSC Codes of Practice (the Codes) and follow any good practices set out in JFSC policies, guides and other formal communications (JFSC requirements).

Therefore, an RP needs to assess its effectiveness to meet the JFSC requirements and any relevant legislation. 

Limitations of the Comsure review and assessment

In the round, an effective board will define its purpose and strategy underpinned by values and behaviours that shape culture and how it conducts its business for its long-term success and viability. These elements are guided and dictated by many factors, one of which are those of the JFSC, and the Comsure assessment will therefore limit its work to an RP's effectiveness to meet the JFSC requirements.

Comsure approach 

Comsure has developed a review format that is comprehensive, collaborative and non-intrusive. And Comsure will tailor its assessment process to meet a client's specific requirements

Comsure will take account of the following areas:

1. Board composition and structure

2. Board strategy and objectives

3. Board risk assessments and strategies 

4. Board rules (including policy and procedures) 

5. Board competence and knowledge

6. Board delegated authorities to committees (or others)

7. Board minutes and packs

8. Communications with stakeholders

Also, Comsure will issue:- 

9. A survey of directors knowledge, competence and opinions

Comsure methodology

Against the above, Comsure will:-

1. Request documentation for review – Comsure will analyse the documentation and write up any observations 

2. Interview directors – Comsure will analyse and write up any observations

3. Interview key employees – Comsure will examine the documentation and write up any observations

4. Undertake a series of surveys to determine regulatory knowledge and personal views. – Comsure will analyse and write up any observations and make the survey available for the board's further assessment.

5. Issue a report based on its observations in points 1-4 above.

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