Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

FSA tells banks to claw back bonuses on year of scandals

FSA tells banks to claw back bonuses on year of scandals

The FSA has told British and foreign banks operating in the City that it will expect them to show they have clawed back bonuses and exercised restraint after a year of major scandals to hit the sector.

In a letter sent at the end of October to senior executives by Andrew Bailey, head of the FSA’s prudential business unit, and obtained by the FT, the regulator said urged businesses to reduce bonuses across all operations, to demonstrate the seriousness of the failings revealed.

Barclays was fined £290 million over its role in the Libor manipulation scandal and HSBC has set aside £950 million to settle failings in its global money laundering controls.  

Lloyds set aside a further £1 billion last week to settle compensation claims related to PPI mis-selling, bringing its total compensation provisions to £5.27 billion.   

‘Ex-post risk adjustment will be a major area of focus in our 2012 review of the firm’s remuneration policies,’ wrote Bailey. ‘Firms should also forfeit or reduce current year’s bonuses if appropriate.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Foster: the world’s most unconventional monetary policies

Brewin's Foster: the world’s most unconventional monetary policies

In this week's podcast, Guy Foster asks why the world’s biggest economies are pursuing some of the world’s most unconventional monetary policies. 

Play Charles Tan on Woodford & hidden trust income gems

Charles Tan on Woodford & hidden trust income gems

Cantor Fitzgerald investment company analyst Charles Tan discusses Woodford Patient Capital and some of the income trusts slipping under the radar.  

Play Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

Taxicab Tenner: SGPB Hambros CIO Eric Verleyen

In the second episode of our new series, Verleyen jumps on board a black cab and explains how hard it's become to find good valuation on the market.  

Wealth Manager on Twitter