Consultation paper CP10/19 published July 2010. Consultation period ended on 8 October 2010. Handbook rules came into effect on 1 January 2011 for remuneration in respect of 2010 performance
The Financial Services Authority has consulted on revisions to its Remuneration Code which took effect on 1 January 2010 in response to the 2007/08 financial crisis. The FSA estimated that the revised Code would apply to over 2,500 firms regulated by the FSA from 1 January 2011 including all banks and building societies, asset managers, hedge fund managers, UCITS investment firms and some firms that engage in corporate finance, venture capital, the provision of financial advice and stockbrokers. In relation to pensions, discretionary enhancements which form part of an employee's variable remuneration package should be held for five years in the form of shares or share-like instruments. The new rule is not intended to apply to an employee's standard pension plan entitlements under the terms of their company pension scheme.