Featured Product

    FSB Consults on Recommendations for Compensation Data Reporting

    May 07, 2018

    FSB launched a consultation on the recommendations for consistent national reporting of data on the use of compensation tools to address misconduct risk. FSB also published a summary note of an industry workshop that was organized last December as part of the FSB work to develop these recommendations. Feedback is invited by July 06, 2018. FSB also welcomes feedback on topics discussed at the workshop that are included in the summary note.

    The recommendations are a part of the FSB’s 2015 workplan on measures to reduce misconduct risk. The proposed data set included in the recommendations is designed to help firms and supervisors answer a number of important questions, including whether governance and risk management processes surrounding compensation:

    • Appropriately include conduct considerations in the design of their compensation and incentive systems, including the setting of individual goals, ex ante performance measurement mechanisms and ex post compensation adjustments

    • Support the effective use of compensation tools to help promote good conduct or to remediate individual conduct that is not in line with the firm’s expectations, including holding individuals accountable for any misconduct that occurs

    • Promote wider risk management goals, including for conduct issues, consistent with the firm’s strategy and risk tolerance

    • Support the effective identification of emerging misconduct risks and, where appropriate, review use of incentive systems and compensation decisions in response to conduct incidents to ensure alignment of incentives, risk, and reward

    The recommendations must be viewed in light of the existing national laws and in a manner consistent with the supervisory powers individual regulators have been granted. Decisions on the scope of data gathering, the types of data, and the appropriate data gathering cycle and frequency are solely for national supervisory authorities to make; such decisions should consider the types of supervisory work conducted, the relevant legislative and regulatory framework, the extent to which data is already collected, whether the firm is a significant financial institution, and the specific risk profile or financial activities of the firm.


    Related Links

    Comment Due Date: July 06, 2018

    Keywords: International, Banking, Securities, Insurance, Misconduct Risk, Compensation Reporting, Recommendations, FSB

    Related Articles
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    News

    ECB Issues Results of Sensitivity Analysis of Liquidity Risk for Banks

    ECB published results of 2019 stress test on sensitivity analysis of liquidity risk.

    October 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3958