FSA to extend remuneration code to asset managers

The FSA plans to strengthen its Remuneration Code to encompass over 2,500 firms which will include setting firmer rules on bonus structures for key staff.

Currently, the Code applies to the largest banks, building societies and broker dealers. However, the regulator plans to extend this to asset managers, hedge fund managers, UCITS investment firms as well as some firms engaging in corporate finance, venture capital, the provision of financial advice and stockbrokers. These are firms which are now caught by the Capital Requirements Directive (CRD 3). Firms should know if they come under CRD 3 but if they are unsure they should contact their trade association or refer to their usual supervisory contact at the FSA. As the scope of the cod...