Bank remuneration code will not extend to IFAs, says FSA
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The FSA has decided not to extend its new remuneration code for the banks to include IFA firms or mortgage brokers.
The regulator today published the feedback it received on whether to extend its code on remuneration policies to other FSA-authorised firms.
The FSA says it has decided not to introduce any new rules and will not extend the rules to other sectors “at this stage”.
The FSA’s remuneration code comes into force for large banks, building societies and broker dealers on January 1, 2010. It will apply to any remuneration awards made by these firms for the 2009 performance year.
The regulator has committed to review the effectiveness of the remuneration code in mid 2010 and will take account of European work on remuneration, the Walker Review and the Financial Services Bill.
An FSA release states: “The FSA does not think it beneficial to make further changes now as adjustments will be required to the existing code given the large body of European directives that contain remuneration provisions.
“In the meantime, the FSA expects firms to continue to focus on remuneration risk management. The FSA will continue to address this issue in the course of its usual supervisory action.”
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Readers' comments (15)
How funny!! | 8 Dec 2009 11:40 am
... and will the new 'code' be applied to the FSA as well??
Mmmm ... ...
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Julian Stevens | 8 Dec 2009 11:40 am
How about a remuneration code for the FSA?
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Incompetent Regulators Awards Team | 8 Dec 2009 11:42 am
That's a laugh. As if IFAs earn that much anyway. Most will be out of a job soon. Hence there is no work for the FSA to do!
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Joe | 8 Dec 2009 11:42 am
Just as well ,as IFA's are currently working for practually nothing at the moment...and still paying the FSA their fees .
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SIMON MANSELL | 8 Dec 2009 11:45 am
Because 500 hours of degree study, TCF, the worst depression and debt burden since the WW2 has already ensured that no IFA firm will make any money between now and 2012. Thereafter the 10,000 IFA cull will finish the sector off ready for the banks to move into the IFA vacuum created by the pro banking RDR reforms!
The FSA therefore have no need to have cap income that no longer exists.
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Simon Mansell | 8 Dec 2009 12:00 pm
FAT CAT FSA
The FSA has an "average" salary of £50,000. They paid out almost £20m in staff bonuses, an increase of more than 40pc, despite the banking crisis! They borrowed to pay this bonus from the very banks they regulate!
THE FSA IS PART OF THE PROBLEM AND NOT THE SOLUTION.
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Laurence Frazer | 8 Dec 2009 12:04 pm
I think that Simon has just about summed it up!
This is just laughable.It is about time the FSA
took a long hard look at their cost base. Better
still let a few IFAs do the job as we are paying
for them.
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sictodeathofthem | 8 Dec 2009 12:23 pm
"published the feedback it received"
Where did the fsa get the feedback?
did the fsa ask any IFA for feedback?
Not likely. What a joke! Did any IFA firm get bailed out with taxpayers money? NO so why on earth would they be involved in a remuneration code?
The term Independant financial adviser is a joke!
We are nationalised by a Stasi type quango that tells us how to run a business they know zilch about.They interfere in every aspect of our lives not just our business. What happened to a free market economy?
I agree with other commentators, it is time there was a code for FSA remuneration. Start with Sants - is he worth over £600,000.00 a year before bonus! An ordinary mortal ie those not employed by parasitic quangos could only hope to achieve that after a lifetime of work.
FSA OUT NOW!
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Steven Martin | 8 Dec 2009 12:55 pm
What a lot of rubbish spouted by the commentators. Of course IFAs, or should I say Financial Planners, are making money, plenty are making tons of it. Whingeing commission based pseudo mortgage brokers / life assurance salesmen are struggling and so they should be.
I suggest you redirect the enery you apply to ranting at the FSA to changing your business, passing some exams, treating your customers fairly, being transparent about your charges and offering clients a service that they value.
Maybe then you will be making money and care less about who regulates you.
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How funny (again)!! | 8 Dec 2009 12:56 pm
... couldn't agree more with the last comments!!
Sitting here pee-ing myself laughing at what a shambles the FSA have caused, my mind wandered away from the battlefield (as it does) to the FSA Acronym Game ...
Frequent Scaremongering Allowed
Fun Shafting Advisers
Feckless, Shortsighted Again
.. any more for any more??
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