FSA published proposed guidance on remuneration code
25 April 2011
The revised Code covers a wide variety of firms, including investment banks, retail banks, building societies, asset management firms, stockbrokers, corporate finance firms and multi-lateral trading facilities.
The Financial Services Authority (FSA) published proposed guidance on its remuneration code, which was previously revised to implement the requirements of the third Capital Requirements Directive (CRD III), and came into effect on January 1.
Notably, the consultation covers:
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retention periods, which provides guidance on the rule requiring shares or other instruments paid out as part of variable remuneration to be subject to an appropriate retention policy and sets out the FSA's expectations with respect to the retention period, as well as the FSA’s views regarding tax; and
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guaranteed variable remuneration, which provides guidance on the rule on guarantees - in particular whether prior approval or notification to the FSA is required - in the context of the type of award and the status of the recipient.
The deadline for comment is May 18.
© FSA - Financial Services Authority
