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FSA publishes final Code of Practice on policies relating to remuneration of personnel at FSA regulated firms: financial services alert

Philip J. Morgan (Partner, K&L Gates LLP, London, UK)
Neil Nick Robson (Associate, K&L Gates LLP, London, UK)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 20 November 2009

Abstract

Purpose

The purpose of this paper is to explain UK Financial Services Authority (FSA) Policy Statement 09/15, Reforming Remuneration Practices in Financial Services, (the “Code”) which requires certain large banks, building societies and broker‐dealers in the UK to establish, implement and maintain remuneration policies that are consistent with and promote effective risk management.

Design/methodology/approach

The paper explains the background to the Code, including the FSA's views on bonuses and remuneration; describes the characteristics of the approximately 26 large firms to which the Code will apply; discusses the Code's principles concerning remuneration; details the timing of the key steps for implementation of the Code; explains information on remuneration firms must provide to the FSA; and discusses the FSA's plans for follow‐up.

Practical implications

The FSA is likely to publish similar remuneration guidelines that will extend to all FSA‐authorized firms.

Originality/value

The paper provides practical guidance from experienced financial services lawyers; a possible bellwether of future similar policies from financial regulators in other countries.

Keywords

Citation

Morgan, P.J. and Robson, N.N. (2009), "FSA publishes final Code of Practice on policies relating to remuneration of personnel at FSA regulated firms: financial services alert", Journal of Investment Compliance, Vol. 10 No. 4, pp. 39-41. https://doi.org/10.1108/15285810911007408

Publisher

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Emerald Group Publishing Limited

Copyright © 2009, Authors