Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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
Play On the Road Challenge: Clay pigeon shooting with Thesis' Lansdowne

On the Road Challenge: Clay pigeon shooting with Thesis' Lansdowne

Eleanor Mahmoud goes clay shooting at the National Clay Shooting Centre with Sam Lansdowne from Thesis Asset Management

Play AA-rated Flood on gov't bonds: 'the maths doesn't add up'

AA-rated Flood on gov't bonds: 'the maths doesn't add up'

He also addresses why his Newton Multi-Asset Income fund has such a high cash weighting and why he sees renewables as such a good opportunity.

Play AAA-rated Ali: Identifying the peripheral European plays

AAA-rated Ali: Identifying the peripheral European plays

Citywire AAA-rated Tawhid Ali thinks that plenty of good stocks in the European periphery are being thrown out with the proverbial bath water.

Read More
Your Business: Cover Star Club

Profile: Brewin's Cardiff boss on the Welsh opportunity

Profile: Brewin's Cardiff boss on the Welsh opportunity

Prior to becoming head of Brewin Dolphin Cardiff, Welshman David Myrddin-Evans had only previously visited the city to watch the rugby.

Wealth Manager on Twitter