Corporate Governance Consultant Marian Banor has charged regulators in the financial services sector to be sterner in executing its powers to ensure better compliance among stakeholders.
Madam Barnor was speaking at the third edition of the JoyBusiness Financial Services Forum which on the topic: “The financial service sector cleanup: Now What?”
The corporate governance expert said, “In today’s environment, the regulator must be ferocious”.
Madam Barnor said, “If you have assets in your house and you are protecting those assets, you don’t bring a pet dog but you bring a ferocious dog to protect it.”
She, therefore, insisted the regulator must be aggressive and ferocious in its work and that will serve as an incentive for good behaviour in the sector.
On corporate governance, Madam Barnor said it is critical to have independence in the board room. According to her “Corporate governance is, pushing for strong-minded independent people who can check the activities of the shareholders who own the business”.
She explained that although the shareholders may have injected the capital into the business there are other stakeholders such as the workers of the company who need to be protected hence the need to check the stakeholders.
Madam Barnor further pointed out that although it is good to have men of integrity on the board of directors, the directors must also be courageous. She said “What is the use of having men of integrity in the board room when there is no courage? It is of no consequence. So we need people who have the courage to speak the truth and make sure that the right thing is done and that there is compliance but more importantly people who understand the business of banking”.
She also charged auditor to step up their responsibility in ensuring the best interest of the companies they are employed to audit.