FSF issues recommendations and principles to boost financial systems at London G-20 Summit

Principles for Sound Compensation Practices

The Principles require compensation practices in the financial industry to align employees' incentives with the long-term profitability of the firm. The Principles call for effective governance of compensation, and for compensation to be adjusted for all types of risk, to be symmetric with risk outcomes, and to be sensitive to the time horizon of risks. Implementation by firms will be reinforced through supervisory examinations at the national level.

The Principles are intended to apply to all significant financial institutions but are especially critical for large, systemically important firms. Authorities expect evidence of material progress in the implementation of the Principles by the 2009 remuneration round. Full implementation should proceed as rapidly as possible and be sustained. Authorities, working through the FSF, will ensure coordination and consistency of approaches across jurisdictions.

Principles for Cross-border Cooperation on Crisis Management...Click Here

Update on the Implementation of FSF Recommendations...Click Here

Addressing procyclicality in the financial system...Click Here



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