An independent review led by former Bank of England deputy governor former Sir David Clementi has concluded that the current model of BBC governance should be replaced.
The report, which forms part of the Government’s review of the BBC’s Royal Charter, recommends that: regulatory oversight of the BBC should be passed wholly to Ofcom, and the BBC should have a unitary Board made up with a majority of non-executive directors.
At present governance and regulation of the BBC falls between the BBC Executive, the BBC Trust and Ofcom.
Ofcom oversees certain issues regarding broadcast standards and the BBC’s commercial services, such as BBC World News.
Sir David Clementi said: “The BBC Trust model is flawed. It conflates governance and regulatory functions within the Trust. The BBC should have a unitary Board charged with responsibility for meeting the obligations placed on it under the Royal Charter and Agreement, and responsibility for the interests of Licence Fee payers.
“Regulatory oversight should pass wholly to Ofcom, which is already the public service regulator for the UK’s broadcasting industry and has the ability to look at the BBC in the context of the market as a whole. Ofcom would be a strong regulator to match a strong BBC.”
Sir David also recommends that
- the primary responsibility for the interests of the Licence Fee payers should lie with the BBC Board;
Ofcom should issue the BBC an ‘Operating Framework’, consistent with the revised Royal Charter and Agreement, which would set out the obligations placed on the BBC; - the Operating Framework should include ‘Operating Licences’ which would set out the BBC’s broadcasting content and distribution obligations, including services for the Devolved Nations;
the Charter should place on the BBC a duty to consult with the public both as consumers and as Licence Fee payers; and - the BBC should have a clear ‘Broadcaster First’ system of complaints where it handles complaints in the first instance with Ofcom handling appeals on editorial issues.
Source: DCMS
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