Following FSA’s publication of a draft Code of practice on remuneration at the end of February, it is now consulting on incorporating the Code (which it has revised considerably since its publication) into its Handbook. It also wants to apply it more widely. It wants to apply it at least to large banks, building societies and broker dealers, defined by reference to regulatory capital or for brokers' group shareholder equity. FSA says this definition would extend the Code to about 45 of the largest banks, building societies and broker dealers operating in the UK. It would make the Code’s general requirement a Handbook Rule and the remaining Code principles evidential provisions within the Handbook. It also asks whether it should extend the Code to all authorised firms. Anyway, it will increase its supervisory focus on remuneration policies in all firms. It wants comment on the consultation questions by 18 May, but respondents have until 18 June to answer the discussion questions on extending the Code more widely. FSA is keen to bring new rules into force in November, but recognises there must be as much global consistency as possible on remuneration issues for policies to work successfully so it will take into account other regulators’ plans and progress.
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FSA consults on remuneration policies
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