2012年-FSB全球金融稳定委员会_First_progress_report_on_compensation_practices_2页_82kb

FSB Implementation Monitoring Report Summary

Core Content

The Financial Stability Board (FSB) published a report on 13 June 2012, detailing the progress made by member jurisdictions and financial institutions in implementing the FSB Principles for Sound Compensation Practices (P&S) and their Implementation Standards since the 2011 thematic peer review. This report is part of the FSB's Coordination Framework for Implementation Monitoring.

Main Points

• Implementation Progress:

  • Nearly all FSB member jurisdictions have completed the implementation of the P&S.
  • Jurisdictions previously identified with significant gaps have made notable progress.
  • Additional regulations or supervisory guidance have been issued by several jurisdictions.
  • The Basel Committee's Pillar 3 disclosure requirements for remuneration have been partially implemented, but more work is needed to ensure full embedding across all jurisdictions.

• Firm-Level Adjustments:

  • Most financial institutions have made good progress in aligning their compensation practices with the P&S.
  • Firms deemed significant under the P&S have shown particular improvement.

• Challenges and Gaps:

  • There are still challenging areas that require more progress, such as aligning compensation with ex-ante risk taking and ex-post performance, and identifying material risk takers.
  • A few jurisdictions have not implemented one or more standards related to aligning compensation with prudent risk-taking, citing either inapplicability or domestic constraints.
  • These jurisdictions must ensure that their outcomes are fully consistent with the objectives of the P&S.

• Supervisory Efforts:

  • Supervisory attention to compensation issues is increasing, leading to improved compensation structures at firms.
  • Cross-border supervisory cooperation has also improved in this area.

Key Information

• FSB's Role: The FSB coordinates international efforts to develop and promote effective financial sector policies for financial stability. It includes 24 countries and jurisdictions, international financial institutions, and sector-specific regulatory groups.
• Chairs and Secretariat: The FSB is chaired by Mark Carney, Governor of the Bank of Canada, and its Secretariat is located in Basel, Switzerland, hosted by the Bank for International Settlements.
• Monitoring Mechanisms:
  • A Compensation Monitoring Contact Group has been established to monitor and report on national implementation of the P&S.
  • The Bilateral Complaint Handling Process (BCHP) was launched in April 2012 to address compensation-related complaints based on level playing field concerns.
• G20 Mandate: The FSB's ongoing monitoring and public reporting on compensation practices were mandated by the G20 Leaders in Cannes, who emphasized the importance of addressing remaining gaps and impediments to full implementation of the P&S.

Conclusion

The report underscores the importance of sustained implementation efforts by national authorities and firms to achieve lasting improvements in compensation practices. While progress has been made, challenges remain, particularly in aligning compensation with risk-taking and identifying material risk takers. The FSB will continue to monitor implementation and address any remaining gaps through its established mechanisms.