On 5 October 2011 the FSA published final guidance on issues relating to the FSA’s remuneration code. The guidance explains the FSA’s intentions to monitor implementation of the code until the 2011/2012 annual remuneration review.
The FSA remuneration code guidance uses the FSA proportionality tiers as a starting point:
Proportionality tier 1 firms
Guidance to Proportionality tier 1 firms contains:
- Dear CEO letter;
- Remuneration policy statement template for tier 1 firms;
- Code staff list for tier 1 firms.
The letter and the template set out the questions the FSA will ask at the annual remuneration review stage. The template asks for firms to record their remuneration policies, practices and procedures. The template is provided as an indication of the level of detail expected by the FSA. The annex contains an additional template for firms to record the names of code staff and additional details if necessary.
Proportionality tier 2, 3 and 4 firms
FSA guidance to proportionality tier 2, 3 and 4 firms contains:
- Dear CEO letter;
- Remuneration policy statement template for tier 2 firms;
- Code staff list for tier 2 firms;
- Remuneration policy statement template for tier 3 and 4 firms;
- Code staff list for tier 3 and 4 firms.
The relevant Dear CEO letter defines the relevant code staff within the separate tiers for the purposes of the remuneration policy statement and the code staff list. The CEO letters advise on establishing a long-term incentive plan (LTIPs) for code staff.
Click here for Tier 1 Dear CEO letter
Click here for the Remuneration policy statement template – tier 1 firms.
Click here for the Code staff list – tier 1 firms.
Click here for Tier 2,3 and 4 Dear CEO letter.
Click here for Remuneration policy statement – tier 2 firms.
Click here for Code staff list for tier 3 and 4 firms.