21 Jul 2009, David Benyon, Operational Risk & Regulation
LONDON - The Financial Services Authority (FSA) has issued another 'Dear CEO' letter to warn firms of their obligations under the new remuneration code of practice due to be incorporated into the regulator's handbook.
The new regulations will be implemented on January 1, 2010 "along the lines originally proposed, together with updated supporting principles", which the regulator says take account of comments received from the now closed industry consultation period.
The UK City watchdog says its measures are consistent with regulatory measures suggested by the G-20 Financial Stability Board and in alignment with regulatory developments in the US, Switzerland and the European Union.
The regulator also says it is not proposing to extend grandfathering arrangements for the new regulation to pay obligations entered into after the publication of its remuneration consultation paper on March 18, 2009.
Click here to read the paper.