The FSA has said that due to CEBS taking longer than expected to
publish its final remuneration guidelines (which are now not
expected until 11 or 12 December) there will be a knock-on effect
on the publication of the revised Remuneration Code. It now
does not expect to publish this until mid-December, shortly after
the final CEBS guidelines.
This is because the FSA's revised Remuneration Code has to
take CEBS principles into account and so cannot precede them.
However, the FSA has indicated that the revised Remuneration Code
will still come into effect on 1 January 2011 and there will be no
further relaxation of requirements for firms already within the
scope of the Remuneration Code. Firms who are only brought
within the Remuneration Code on 1 January 2011 will still have
until 1 July 2011 to comply with the rules, subject to transitional
provisions.
We understand that the FSA has, however, indicated that it will
issue guidance on "proportionality" earlier, in about
three weeks' time. This at least will enable most firms
affected by the Remuneration Code to have a good idea of the extent
to which they will be affected by the rules and plan effectively,
as it seems likely (if the tone of the consultation paper was
anything to go by) that most firms may not be too concerned with
the hotly contested provisions where the FSA is waiting for CEBS to
pronounce so long as they are only required to comply
proportionately.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 03/11/2010.
