Pay code delay no problem, says FSA

THE FSA has insisted that the coming bonus season will go smoothly despite late publication of the remuneration code which will govern payments.

The guidelines have to comply with the Committee of European Banking Supervisors (CEBS) regulations, which have been delayed by a month to around 10 December. Banks will have to comply with the rules from 1 January.

Concerns that this will throw the bonus season into disarray were dismissed by the FSA. A spokesman said: “It won’t change anything. There will be transitional rules for those who are currently not covered. We are working with the large firms to make sure that they are in the right shape.”

Some disagree. “If banks are expected to meet their deadlines, it would be nice if CEBS and the FSA had met theirs,” said Nicholas Stretch of law firm CMS Cameron McKenna.

“Reacting to changes in the middle of December is always difficult. People want a printed document that they can put on the table at remuneration meetings.”