At the end of October 2011, the FSA published a guidance consultation on proportionality and remuneration (GC11/25).
The FSA is currently consulting on changing its December 2010 general guidance on proportionality which focuses on the remuneration code in Chapter 19A of the Senior Management Arrangements, Systems and Controls sourcebook (SYSC) and the requirement to make Pillar 3 disclosures relating to remuneration (in accordance with Chapter 11 of the Prudential sourcebook for Banks, Building Societies and Investment Firms (BIPRU). The FSA is of the view that banks and building societies with capital resources between £50m and £100m present a sufficiently low remuneration risk as to warrant tier 3 proportionality treatment. The FSA is therefore proposing a change to the boundary between tiers 2 and 3 for banks and building societies. The consultation recommends that this boundary is raised from £50m to £100m for banks and building societies. This aligns it with the corresponding boundary for BIPRU 730K firms (i.e., full scope BIPRU investment firms).
The guidance consultation closes on 28 November 2011.