Alerts

FSA Remuneration Code, EU Guidelines on Remuneration Policies and Proportionality

October 21, 2010

The draft remuneration code (“Code”) published by the UK Financial Services Authority (“FSA”) at the end of July 2010 was roundly criticised by the UK media and fund management industry as being both inappropriate and unclear, based as it was on the FSA’s existing remuneration code applicable to UK banks and the remuneration of their staff. Draft guidelines for remuneration policies and practices in the EU published by the Committee of European Banking Supervisors (“CEBS”) look likely to lead to substantial changes in the Code and likely softening by the FSA in its stance toward rules relating to the remuneration of staff at FSA-regulated fund managers, although only once the revised Code is published in mid-November 2010 will we know for sure.