The FSA has published a letter concerning the remuneration Code of Practice from its chief executive, Hector Sants, to CEOs of financial services firms carrying out banking and broker-dealer operations.
Mr Sants points out that the consultation has now ended on the FSA’s proposals for aligning remuneration policies, practices and procedures to ensure that they promote and are consistent with effective risk management.
He anticipates that the FSA Board is likely to approve the proposed general rule that incorporates this requirement and includes a set of evidential provisions to help banks and broker-dealers meet it.
The letter gives notice that FSA will require affected firms to submit remuneration policy statements by the end of October 2009, in order to check for compliance with the rule and code, expected to come into effect on 1 January 2010.
View "Dear CEO" letter, 15 July 2007