The FSA said today it would take enforcement action against large banks, building societies and broker dealers who failed to adhere to its new remuneration code, to take effect from January 2010.
The regulator wants pay and bonuses to be more closely linked to the profitability of larger financial institutions, following concerns the current regime contributed to excessive risk taking in the banking sector. Its new code makes clear firms should not enter into contracts with individuals which provide guaranteed bonuses for more than one year. For senior employees, the expectation is two-thirds of bonuses will be spread over three years. Firms will have to provide the FSA with a remuneration policy statement by the end of October. This will have to be signed off by remuneration ...
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