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.
