On Monday, the U.K. Financial Services Authority (FSA) published a letter sent by FSA Chief Executive Hector Sants last Wednesday, that requires U.K. banks to send their remuneration policies to the FSA by the end of October, in order for the FSA to verify whether such remuneration policies and practices are in line with the pay policies set forth in the March 18 Turner Review consultation paper, and compliant with the FSA's proposed draft remuneration policy rule and code. The draft rule and code is set to be put before the FSA Board for adoption "shortly" and envisioned to take effect January 1, 2010. In particular, Mr. Sants noted that "guaranteed bonuses which run for a period of more than one year may be inconsistent with effective risk management," and that the FSA would not "extend grandfathering arrangements to obligations entered into or after" publication of the Turner Review. The FSA intends to notify each bank's CEO and the Chairman of each bank's Remuneration Committee on what will be required to be provided in the remuneration policy statement.