Remuneration Feedback Statement

As you will know the Remuneration Code, which is set out in SYSC 19, applies from 1 January to large banks, building societies and BIPRU 730K firms.

In the original Consultation Paper the FSA invited general discussion on whether to extend the Code to other FSA-authorised firms. FS 09/5 (“Reforming Remuneration Practices in Financial Services – Feedback on Chapter 6 of CP09/10”) advises that the FSA will not introduce any new rules nor extend the existing rules to any other sectors ‘at this stage’.

This in part reflects the proposed Financial Services Bill which may give the FSA new powers on remuneration. In any event the FSA will review the effectiveness of the Code in the middle of next year which will give them another opportunity to consider extending it.