View more on these topics

Banks must submit remuneration policies by October, says Sants

FSA chief executive Hector Sants has written to banks and large financial institutions advising them to submit a remuneration policy statement by the end of October.

In March the FSA published a consultation paper that aims to align remuneration policies, procedures and practices to ensure they promote effective risk management.

In the letter sent to CEOs last Wednesday, Sants says the FSA will move forward with its proposals, together with updated supporting principles that take account of consultation responses, from January 1, 2010.

He says firms must providing the information necessary for the FSA to verify that remuneration policies and practices will be compliant with the new code by the end of October.

He says: “We will be writing shortly to you and to the chairman of your group’s remuneration committee to set out the information that we will require in the remuneration policy statement.

Sants says guaranteed bonuses that run for a period of more than one year may be inconsistent with effective risk management.

He adds: “Moreover, we are not proposing to extend grandfathering arrangements to obligations entered into after publication of our consultation paper on 18 March 2009.

“It is essential that the market should not revert to remuneration practices that would be incompatible with our intended outcomes if the rule and code become effective next year.”



Aviva cuts with-profit bonus rates

Aviva has cut its with-profit regular bonuses for CGNU unitised policies by 0.75 per cent on life polices and 0.5 per cent on pension policies and reduced final bonus rates on its with-profits funds.

Loanback lifeline

Considered defunct, thanks to the credit crisis, small self-administered pension schemes have seen a resurgence in popularity, providing small businesses with a lifeline. In an economic climate where borrowing remains difficult, company directors can use their SSAS to borrow up to half their pension pot and repay it at an interest level of 1.5 per cent – well below the level that banks are charging.

Japanese trade flows nosedive in first quarter

Japan’s trade flows collapsed by more than double the average of the Group of Seven (G7), in the first quarter of 2009.Exports by the largest developed countries fell by an average rate of 13.6% quarter-on-quarter, according to data released by the Organisation for Economic Cooperation and Development (OECD). Imports were down 10.5%. “Japan seems to […]

How to use wills to protect your clients’ wishes

March was Free Wills Month! Free Wills Month brings together a group of well-respected charities to offer members of the public aged 55 and over the opportunity to have their simple wills written or updated free of charge by using participating solicitors in selected locations around England and Wales. Research by the Law Society* highlighted that only 64 […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm