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FSA to back down on bankers’ pay code

The FSA has softened its proposals on the structure of bankers’ bonuses in order to ensure the UK remains a competitive jurisdiction, according to the Financial Times.

Reports suggest the regulator’s remuneration code, due to be published today, will back down from draft recommendations that two-thirds of individual bonuses should be deferred.

It will also ease up on requirements for each bonus to take account of overall performance of a group, rather than individual performance.

FSA chief executive Hector Sants told the FT that the code still focuses on a link between risk and remuneration, but the regulator has concerns that bankers will move out of the UK if specific limits are applied.

Sants says the code has been designed to ensure that “boards and remuneration committees focus more closely on the link between compensation, risk appetite and sustainability”.

But he adds: “Such an approach cannot work if it is only applied in the UK.”

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  1. FSA to back down on bankers’ pay code
    Well done Hector ~ whilst we’re on the subject, perhaps you could instruct your henchmen to keep their noses out of what IFA’s need to charge their clients to stay financially afloat.

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