FSA Code of practice on remuneration policies

Executive remuneration is a popular topic currently.

The UK Financial Services Authority has published a Code of Practice which applies to all FSA-regulated firms.

The principles embodied in the Code are not concerned with levels or quantum of remuneration, which are a matter for firms' boards. The aim of the Code is to ensure that firms have remuneration policies which are consistent with sound risk management, and which do not expose them to excessive risk.

It is worth looking at the FSA Code for guidance on principles relating to the setting of remuneration, performance incentives and bonuses.

UPDATE: In this speech APRA Chair John Laker gives an indication of the principles behind APRA's proposed framework for executive remuneration (see page 10).

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