- Hedge Funds Soar in '09, Most Still in the Red
- Eye on Energy: China’s Great Nat Gas Deal
- HP's Results Top Forecasts, Giving Tech Sector a Boost
- Manhattan Office Building Sales at Standstill: Report
- As Stocks Lose 'Sugar Rush,' Investors Turn Cautious
- Cramer: Is the Market 'Correction' Over Already?
- Health-Care Overhaul Loses Support Among Public: Poll
- Apple Probes Reports of iPhone Explosions in Europe
- Sony Cuts PlayStation 3 Price, Unveils Redesigned Model
- The Case for Small Caps: Portfolio Manager
- Pros Say: S&P to Fall to 900-920 in ‘Tactical Selloff’
- Pulte's CEO Dugas: Exclusive Interview
- Farrell: A Little Economic News and Some Stocks
- HP Continues Tech's Big 'Mo'
- HP Earnings - Mark Hurd Exclusive
- Art Cashin: We Could See 'Historic Trading' Soon
- Favre Makes Vikings "Deals" Vanish
- Vindication for the Backdating's Poster Boy?
|
CNBC'S MOST SHARED
- Michael Vick Signing: Winners & Losers
- US Builds Crime Cases on Clients of UBS
- How Many Soccer Players Does it Take to Put On a T-Shirt?
- Dollar Bulls May Gain Upper Hand: Forex Analyst
- Existing-Home Sales Rise, Helped by Lower Prices
- Cramer: Citigroup Is 'Red Hot'
- More Workers Are Increasing Retirement Savings: Fidelity
- Stocks Gain 1.3% After Fed's 'Rosy' Outlook
- Consumer Confidence Stronger in August: Survey
- Second Stimulus Needed to Avoid Lost Decade: Krugman
Text Size 
Britain's financial watchdog has warned banks that guaranteed bonuses that last longer than a year will break proposed rules on remuneration due to come into force next January.
The Financial Services Authority said in a letter sent to the chief executives of around 45 of London's largest banks and brokers that any bonus deals of this kind agreed after a consultation on pay that began on March 18 would be barred by the new code.
The FSA consultation, which has now closed, was prompted by the banking crisis last year which many believe was fueled by short-term pay incentives that encouraged bankers and traders to take excessive risk.
"It is essential that the market should not revert to remuneration practices that would be incompatible with our intended outcomes if the rule and code become effective next year," FSA Chief Executive Hector Sants said in the letter.
 |
Sharon Lorimer |
"I would draw your attention to the fact that guaranteed bonuses which run for a period of more than one year may be inconsistent with effective risk management."
He said financial institutions would have to give the FSA information on their pay plans by the end of October so that the regulator could check they complied with the proposed rules.
The letter, dated July 15, was published by the regulator on its website on Monday.
Last week former Morgan Stanley executive David Walker said in a review of bank governance that executive bonuses should be awarded over a five-year period.
Data is a real-time snapshot *Data is delayed at least 15 minutes