FIA governance restructure given the green light

Changes to the FIA statutes have been granted at the General Assembly in Rwanda, affecting the roles of the ethics and audit committees at motorsport’s governing body.

Under new plans, the responsibilities of the compliance officer would mean that power would be handed over to the FIA president and the president of its senate.

It would also remove the power of the audit committee to investigate financial issues independently and is now only required “if asked to do so by the president of the Senate”.

The FIA has given three main reasons for making changes to its rules, among them stopping leaks to the media.

A statement relating to the changes made relating to the ethics committee said: “First, to preserve and enhance the independence of the ethics committee by reducing the involvement of the FIA administration in its operation.

“The ethics committee previously only reported to the president, it now reports to both the president and the president of the senate.

“The committee now has the powers to independently assess whether or not to launch an investigation.

“Second, as a result of continuous leaks to the media of confidential material, including ethics committee reports, it is now proposed that the distribution of any ethics committee report will be limited.

Red Bull Racing Team Principal Christian Horner and Mohammed ben Sulayem, FIA President

Photo by: Red Bull Content Pool

“This does not prevent either the president or the president of the senate from involving senate members or other members of the FIA or its staff in discussing or implementing any recommendations from the ethics committee.

“Finally, ethics committee reports can often contain material of a confidential nature including criminal or safeguarding issues.

“It was therefore necessary to limit the automatic sharing of this information with multiple members and FIA staff.

“Limiting the distribution of the report will also protect the complainant and individual subject to the investigation.”

With regard to the audit committee, the FIA states that its function is to act as an “advisory body to the senate”.

A statement added: “The aim of the changes is to clarify that the audit committee is an advisory body to the senate and that it shall operate within the limits of the FIA statutes.

“The proposed amendments simply clarify that the audit committee is a support body for the senate and that the internal regulations of the audit committee will, in future, be approved by the senate.

“The audit committee retains its powers to assist and investigate if asked to do so by the president of the senate.”

David Richards and Mohammed Ben Sulayem, President, FIA

Photo by: Mark Sutton / Motorsport Images

The proposals drew criticism from several senior F1 team members who expressed their concerns to Autosport.

Both David Richards, who is the UK’s representative on the World Motor Sport Council, and the head of Austria’s motorsport federation, Oliver Schmerold, had also expressed their concerns at the proposals which remove the FIA’s leadership from being held to account for bad governance.

Meanwhile, the FIA has announced a significant turnaround in its financial status. The FIA forecasts an operating result of €2.2m in 2024 compared to -€24m in 2021.

FIA President Mohammed Ben Sulayem said: “This achievement is a result of our commitment of reform of the organisation in the areas of governance and finance.

“The new FIA leadership inherited a financial situation which was not sustainable in 2022. We have worked hard to reduce a sizeable deficit and have stabilised the overall financial health of the federation.

“We have implemented cost-containment measures and revenue-generating strategies to put the FIA on a more sustainable financial footing to meet our primary purpose of supporting our member clubs.”