Credit check on bank signatories?

Question

Model financial regulations state that the council should seek credit references on councillors who are signatories.

Does anyone know if this is legislation or just recommended good practice?

Thank you.

Edit:  Thank you all for the replies.

Answer 1

It's an optional item in the model Regs, so it's not a requirement. I leave it out, as we don't do it.

Answer 2

Sometimes banks do it as a matter of course

Answer 3

I often think this is completely pointless and unnecessary for Council's to do. There should be multiple signatories and unless a Councillor has committed fraud (disqualifies them anyway) then their personal circumstances shouldn't have an impact on them making a group decision on council finances which should be signed off at full council anyway.
Just another bit of suggested red tape for PC's

Comments

Thanks for your reply. We don't do it, and as it's not a necessity I agree with you.