The FSA has published a Policy Statement (PS 12/18) in relation to data collection on remuneration practices. In it, the regulator sets out the feedback it received to its earlier Consultation Paper CP 12/18 and the final rules it has decided upon. The new rules amend parts of the Remuneration Code in SYSC and the reporting requirements contained in SUP, through the Supervision Manual (Remuneration Reporting) Instrument 2012 which came into force on 1 November 2012.
PS 12/18 sets out the new rules in accordance with the Capital Requirements Directive (CRD 3) and the European Banking Authority's guidelines on a Benchmarking Information Report and the High Earners Report that firms should submit annually. The Benchmarking Information Report requires firms to provide certain information in relation to their Remuneration Code Staff, including the total remuneration they receive, broken down by fixed and variable remuneration in cash and shares. The High Earner Report will require firms to disclose information on employees whose total annual remuneration is EUR 1 million or more.
These new requirements will apply to banks, building societies and investment firms. These firms should file two versions of each report by 31 December 2012 – one for each of the last two complete financial years. Going forward firms will be required to submit each report annually, within four months of their accounting year end.