Unintended consequences for the FSA
- Increased FSA powers to tame pay and bonuses not unexpected
- Focus on the small number of contracts that could be affected
- Must not distract from momentum on overall remuneration reform and alignment with risk
The forthcoming Financial Services Bill, expected to be outlined in the Queen’s Speech, will apparently give the Financial Services Authority (FSA) new powers to void contractual remuneration agreements entered into from next spring if it believes they promote excessive risk taking.
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The Bottom Line:If Mr Cable has his way...
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