The Investment Management Association has criticised the FSA over its consultation on remuneration in the sector.
Guy Sears, the director of wholesale at the IMA, says the FSA’s consolidation failed to reflect adequately the current practices of those that work in the asset management industry.
Sears says the FSA also needs to get a more realistic expectation for the implementation timetable. At the moment, companies have less than 12 weeks in which to comply with the majority of the rules.
In August last year, the FSA introduced its remuneration code that required large banks, building societies and broker dealers to establish, implement and maintain remuneration policies consistent with effective risk management.
However, at the end of July, the FSA announced plans to update its Remuneration Code and extend it across 2,500 more firms. Under the new policies, the code includes all banks and building societies, asset managers, hedge fund managers, Ucits investment firms as well as some firms that engage in corporate finance, venture capital, the provision of financial advice and stockbrokers.
Despite the criticism, Sears acknowledges that since the document was first published, further statements by the FSA and the Committee of European Banking Supervisorshave provided some reassurance.
To help its members comply with those rules, the IMA has drafted guidance for the asset management industry.