FSA warns on staff bonus levels

The UK Financial Services Authority (FSA) has urged investment banks to re-examine their attitudes towards annual staff bonuses. In its annual Financial Risk Outlook, the UK regulator highlighted staff remuneration as a particular area of supervisory concern, noting that ailing performances by many investment banks are not being reflected in employees' pay packets.

"There is a concern over whether investment banks' (bonus) policies provide the right incentives for risk assessment," the regulator

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