Remuneration Code 'has led to more demanding standards'

The implementation of the Financial Services Authority's (FSA's) Remuneration Code has led to more demanding standards throughout the sector, the regulator has claimed.

As the FSA unveiled its updated code, strengthening areas including application and deferral, the regulator has said that the existing guidelines have ensured that remuneration policies, practices and procedures are consistent with and promote effective risk management.

The FSA explained that successful implementation has resulted in improved standards in a number of areas, as well as shifting the composition of remuneration structures to forms more consistent with effective risk management.

"More generally, the FSA has seen stronger and more independent remuneration committees and greater recognition of the need to consider risk when setting remuneration policies and signing off bonus policies," it said.

Recently, the watchdog published its near final-rules to strengthen the resilience of the credit union sector and reduce the number of failures in the industry in the form of a new Credit Union sourcebook.

Posted by Tony Miller