FSA publishes consultation paper on remuneration

by Gill Montia

Story link: FSA publishes consultation paper on remuneration

The Financial Services Authority (FSA) has published a consultation paper on remuneration, which outlines a code of practice for some of the larger players in the UK banking and investment sector.

The regulator is proposing that firms “establish, implement and maintain remuneration policies, procedures and practices that are consistent with and promote effective risk management”.

The code contains a further 10 principles that, if adopted, would apply to around 45 of the largest banks, building societies and broker dealers operating in the UK.

The consultation paper notes that in order to be effective, policies on remuneration should be implemented globally and in a consistent manner.

It also invites discussion on whether the code should be applied to all other FSA-authorised firms.

Larger banks and broker dealers have until 18th May to respond to the proposals and the period for discussion and feedback on the idea of extending the code to other firms regulated by the FSA will run until 18th June.