FSB launches second peer review on compensation practices and invites feedback from stakeholders
The Financial Stability Board (FSB) has launched its second peer review on compensation practices. The review will assess the progress made by national authorities and significant financial institutions in implementing the FSB Principles for Sound Compensation Practices and their Implementation Standards, as well as the impact on compensation practices at financial institutions of national policy measures taken to implement the Principles and Standards.
The FSB Principles for Sound Compensation Practices and their Implementation Standards were endorsed by the G20 Leaders at their summits in London in April 2009 and Pittsburgh in September 2009. The FSB completed its first peer review on compensation in March 2010 concluding that, at that relatively early stage in the process, some key issues were yet to be resolved and effective implementation was far from complete. The 2010 review therefore recommended that the FSB undertake a follow up review in 2011. In the meantime, the G20 Leaders, at the June 2010 Toronto Summit, encouraged all countries and financial institutions to fully implement the FSB Principles and Standards by end-2010.
The 2011 review will assess the different approaches to implementing the FSB Principles and Standards by surveying supervisors and regulators and by surveying a sample of major firms directly. The responses of supervisors and regulators, and aggregated responses of firms will be analysed and discussed by the FSB later this year. The questionnaires being used for the surveys are attached. The peer review report will be published in the autumn.
As part of this peer review, in addition to the information to be collected via the surveys, the FSB invites feedback from financial institutions, industry associations, and other stakeholders on their experiences regarding compensation practices, either in a particular country or across several countries. This could include comments on: gaps in regulatory and supervisory oversight; progress and potential challenges faced by firms in implementing the FSB Principles and Standards; and how market practices have evolved in recent years, including possible examples of leading practices in compensation structures and policies.
Feedback should be submitted by 15 June 2011 to email@example.com under the subject heading “FSB Peer Review on Compensation Practices.” Individual submissions will not be made public.
Salary Structure in the Indian Banking Sector- A Discussion Note ...Read here
Report on aligning remuneration with risk and performance ...Read here
FSB to strengthen the regulation of the shadow banking system ...Read here
Global financial risk & improve macro-prudential regulation ...Read here
Major initiatives to strengthen the resiliency of the financial system...Read here
Review on residential mortgage underwriting & origination practices ...Read here
FSB reports progress in implementing global financial reforms...Read here
Final elements of the reforms to raise quality of regulatory capital...Read here
Document for Pillar 3 disclosure requirements on remuneration...Read here
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
Paper on Good Practice Principles on Supervisory Colleges. ...Read here
Principles for enhancing corporate governance...Read here
Feedback on residential mortgage underwriting practices...Read here
Options for strengthening repo clearing & settlement arrangements ...Read here
CLICK FOR MORE FEATURES & STORIES