On 10 May 2010, the 'Temporary Committee for Examination of the Financial System' presented its report on the causes of the financial crisis. The report makes various recommendations for improving and strengthening the operation of the financial sector in the future. A number of recommendations relate to remuneration policies in the financial sector. In this regard, the committee has not launched any new ideas, but recommends that the general principles on remuneration at banks laid down in, among other things, the Banking Code and the Principles should also apply to other types of financial institutions, such as insurers and pension funds. The committee also proposes that the scope of certain principles regarding remuneration (including, but not limited to, severance packages) be expanded – possibly in amended form – to apply not only for management board members and/or senior management, but also for the rest of the organisation. In addition, the committee expressly leaves open the possibility of enacting the provisions of the Banking Code into law, if it becomes apparent that the code is not being complied with sufficiently. Finally, the committee has welcomed the proposals of the Minister of Finance to attach far-reaching conditions to the remuneration of management board members of financial institutions in the event that the relevant institution is granted financial support by the government.
Register Now As you are not an existing subscriber please register for your free daily legal newsfeed service.Register
If you have any questions about the service please contact email@example.com or call Lexology Customer Services on +44 20 7234 0606.
Parliamentary examination of financial system (De Wit Committee)
If you are interested in submitting an article to Lexology, please contact Andrew Teague at firstname.lastname@example.org.