Posted on 27 November 2009
The final version of the Walker Review of corporate governance in UK banks and other financial industry entities has been published and the Government has announced it will move quickly to implement the reforms of bank pay and governance proposals via the Financial Services Bill which empowers the Treasury to issue regulations forcing banks to disclose in bands the number of staff earning more than £1 million per annum. The Government expects to issue draft regulations for consultation in the New Year and bring them into force as soon as practicable after enactment of the Bill. This will force disclosure for the 2010 performance year.
In a separate statement, the FSA noted that many of the Walker recommendations complement the work that the FSA is already carrying out. The FSA will publish a further consultation paper on governance and Approved Persons early next year. The FSA has also reiterated its commitment to reviewing its remuneration code next year in order to take any international developments, and the report’s wider recommendations, into account.
In relation to shareholder engagement, on conclusion of the Financial Reporting Council’s consultation on the "Stewardship Code", the FSA will consult upon a rule introducing a "comply or explain" disclosure requirement for relevant investment management firms.
Related Link: Walker Report - Final Recommendations
