October 6, 2009
G-20 Summit Ends with FSB’s Implementation Standards
– Broc Romanek, CompensationStandards.com
As expected, the G-20 Summit ended with the release of these implementation standards that were developed by the Financial Stability Board in conjunction with the G-20 and provide the greatest degree of detail to date on global compensation regulation that could impact global financial institutions. These implementation standards build upon the principles that the FSB issued back in April.
The implementation standards focus on what the FSB considers the critical topics to be addressed first: Pay Structure and Risk Alignment; Governance; Compensation and Capital; Disclosure; and Supervisory Oversight. The Standards state that
“[f]irms and supervisors should ensure the process of implementation is begun immediately and pursued rigorously in their respective jurisdictions.” In a joint statement issued by the UK Treasury, the five largest UK banks – Barclays, HSBC, Lloyds, Royal Bank of Scotland and Standard Chartered – said they welcome the new rules and expressed hope that “there is parity both nationally and internationally on these issues.”
Perhaps not the best online organization, but I have been posting related content in our “Bonuses” Practice Area…