The British Bankers’ Association (BBA) has released a statement in response to FSA Policy Statement 09/15: Reforming remuneration practices in financial services (PS09/15).
The BBA states that:
"Coordinated action by the world's financial regulators will be the only effective way to reform pay structures in the financial sector."
Angela Knight, BBA Chief Executive welcomed the Code, but pointed out that it only will apply to 26 banks and financial organisations in the UK so that unless other countries apply the same rules with the same timing, there will be a high risk of losing business overseas.
"Our concerns are that other countries have talked about similar changes but have not made them. For this Code to succeed, our European partners and the G20 countries must also step up to the plate and do what the UK has done. The principal cause of the global financial problems was not bankers' pay. It was however a contributory factor globally - as such it needs to be addressed globally."
View Other countries must play their part in bank pay reform, says BBA, 12 August 2009