FSB has published its second progress report on implementation of its Principles for Sound Compensation Practices and their Implementation Standards. It is pleased with progress, but says it needs more evidence that implementation is effectively leading to more prudent risk-taking behaviour. It acknowledges this will take time, and highlights some emerging trends and practices. All but two FSB member jurisdictions have now implemented the principles and standards and are focusing on effective supervision and oversight of implementation by relevant firms. FSB noted the need for further work on the identification criteria for material risk-takers and other "level playing field" concerns. Generally, it says disclosure has improved, although access to and transparency of data is still often difficult. FSB will continue to monitor compliance and develop guidelines for good practice, although it also acknowledges that certain current regulatory initiatives could materially change compensation structures. (Source: FSB Reports on Compensation Practices)