Basel Committee issues consultative document for Pillar 3 disclosure requirements on remuneration
December 27, 2010:
The Basel Committee on Banking Supervision today issued for consultation Pillar 3 disclosure requirements for remuneration.
The Basel Committee believes that these disclosure requirements, developed in consultation with the Financial Stability Board, will support effective market discipline. Mr Fernando Vargas, Chairman of the Committee’s Task Force on Remuneration and Associate Director General for Banking Supervision at the Bank of Spain, explained that the disclosure requirements “will allow market participants to assess the quality of a bank’s compensation practices and the incentives towards risk taking they support”. He added that “these requirements should also contribute to promote greater convergence and consistency of disclosure on remuneration”.
The Committee’s proposed Pillar 3 disclosure requirements on remuneration add greater specificity to the disclosure guidance on this topic that was included in the supplemental Pillar 2 guidance issued by the Committee in July 2009. The proposals cover the main components of sound remuneration practices and take full account of the FSB’s Principles for Sound Compensation Practices and their related Implementation Standards.
The Basel Committee welcomes comments on this consultative document. Comments should be submitted by Friday, 25 February 2011 by post to the Secretariat of the Basel Committee on Banking Supervision, Bank for International Settlements, CH-4002 Basel, Switzerland. All comments may be published on the Bank for International Settlements’s website unless a commenter specifically requests confidential treatment.
Basel Committee issues Basel III rules text...Read here
Guidance on backtesting counterparty credit risk models...Read here
Basel Committee issues consultative papers on operational risk ...Read here
Final paper on Good Practice Principles on Supervisory Colleges. ...Read here
Principles for enhancing corporate governance...Read here
FSB invites feedback on residential mortgage underwriting practices...Read here
Options for strengthening repo clearing and settlement arrangements ...Read here
Microfinance activities and the Core Principles-Basel Committee...Read here
Macroeconomic impact of stronger capital and liquidity requirements... Read here
Broad agreement on capital & liquidity reform package... Read here
FSB invites feedback on risk disclosure practices... Read here
Basel Committee progress on regulatory reform package... Read here
Fiscal consolidation & financial sector reform... Read here
Basel announces adjustments to the Basel II market risk framework... Read here
CLICK FOR MORE FEATURES & STORIES