The European Council’s Committee of Permanent Representatives (‘COREPER’) has agreed amending text of the Capital Requirements Directive (‘CRD’) III which will affect remuneration and bonuses – possibly from January 2011. As you will know the FSA implemented a Remuneration Code in SYSC 19 (see Regulatory Roundup 6). SYSC 19 only applies to UK banks and building societies and large BIPRU 730k firms. The proposals would impact on all firms subject to the CRD.
The FSA are studying the draft text of the proposed directive (which the European Parliament are expected to vote on next week) for how it may impact on current rules and guidance.
In any event, the FSA will need to consult on the proposed rules. We will update clients when further information is known.
