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
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter