FSA To Delay Broader Application Of Remuneration Rules

On 8 December 2009, the FSA announced that it has, for the moment at least, decided not to apply the special remuneration requirements contained in its Remuneration Code outside the top 26 financial institutions.

On the day before the pre-Budget report is expected to have more bad news for banks and top-earners, this is a rare good piece of news (and indeed this may have been timed to sweeten the medicine being administered over the next few weeks). However, the reprieve will only be temporary. In mid-2010, the FSA is to revisit its Remuneration Code and will consider again how remuneration should be supervised across the rest of the banking sector and in other areas such as insurance and funds.