The Financial Services Authority (FSA) is to update its Remuneration Code in accordance with the Capital Requirements Directive (CRD3) and the Financial Services Act 2010.
According to the regulator, its current code applies to the largest banks, building societies and broker dealers, but CRD3 will bring over 2,500 firms within the scope of the rules.
"These include all banks and building societies, asset managers, hedge fund managers, UCITS investment firms as well as some firms that engage in corporate finance, venture capital, the provision of financial advice and stockbrokers," the FSA stated.
However, the watchdog explained that it does not intend the final rules to be "super-equivalent" to the CRD3 requirements unless required to be so by UK legislation.
Recently, the FSA welcomed the publication of the results of the EU-wide stress test exercise conducted by the Committee of European Banking Supervisors, which the regulator says shows that the UK banks are "well placed" to handle further periods of economic stress, should such an occurrence develop.
Posted by Claire Robin 