March 30, 2009
FSA’s Draft Code: Remuneration Policies for FSA Regulated Firms
– Broc Romanek, CompensationStandards.com
A few weeks ago, the UK’s regulator – the Financial Services Authority – published a draft “Code of Practice on Remuneration Policies.” It is proposed that the Code will be relevant to all FSA-regulated firms, not just banks, and will relate to the remuneration of all employees. It would therefore apply to the UK FSA-authorised entities of non-UK firms operating in the UK.
The Code comprises one general principle and 10 specific principles and develops ideas first set out in a “Dear CEO” letter sent last year by the FSA to the CEOs of many banks. Although it is not clear when the final Code will formally become part of FSA regulation, it is expected to be in the near term.
Learn more in our “International” Practice Area about this development.
French Parliament Toughens Tax/Social Security Treatment of Golden Parachutes
This recent Latham & Watkins memo explains the new French changes to the social security treatment of indemnities, including golden parachutes, paid to a manager due to the forced termination of duties, as well as the new tax treatment of certain golden parachutes at the level of the paying company.