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17 December 2010

FSA revised its remuneration code


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FSA published an updated Remuneration Code to take into account changes required by the Capital Requirements Directive III.


The main changes to the previous proposals which the FSA consulted on are as follows:

·         Proportion in Shares – CEBS guidelines state that at least 50% of variable remuneration should consist of shares (or other specified instruments) and that this should be applied equally to both the deferred and undeferred portions.
·         Retention period – CEBS guidelines state that variable remuneration paid in shares (or other specified instruments) should be subject to an appropriate retention period.
·         Guaranteed bonuses – Provisions on guaranteed bonuses should be applied on a firm-wide basis and not just to ‘Code staff’, in line with both CEBS guidelines and the FSB standards.




© FSA - Financial Services Authority


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