Peer review on implementation of financial sector compensation reforms in the UK.
Compensation Practices – Implementation
The G20 Leaders in the November 2011 Cannes Summit Declaration called on the FSB to “undertake an ongoing monitoring and public reporting on compensation practices focused on remaining gaps and impediments to full implementation of these standards and carry out an ongoing bilateral complaint handling process to address level playing field concerns of individual firms”.
The FSB has designated compensation practices as one of the priority areas for implementation monitoring. The task of regular monitoring and reporting in this area is carried out by the FSB Compensation Monitoring Contact Group (CMCG). This includes monitoring and reporting on national/regional implementation in this area and on the results of the bilateral complaint handling process, a mechanism by which national supervisors from the FSB member jurisdictions work together to verify and, as needed, address specific compensation-related complaints by financial institutions that give rise to level playing field concerns.
The FSB reports on the status of implementation of compensation reforms in its Annual Report.
Status of implementation
View status of implementation of reforms in priority areas by FSB jurisdictions as reported in the latest FSB Annual Report to G20 (as of October 2023).
For further information, see the latest FSB compensation progress report (as of November 2021).
FSB Peer Reviews
14 April 2021
28 April 2017
Peer review examines the implementation of the G20/OECD Principles of Corporate Governance in FSB jurisdictions.
10 October 2011
This report assesses the progress made by national authorities and significant financial institutions in implementing the Principles and Standards, as well as their impact on compensation practices at firms.
30 March 2010
This report provides an overall assessment of the status of implementation and makes recommendations of additional measures to deliver effective and sustained changes in industry practices.
Progress Reports
This report provides insights from financial institutions on the link between compensation frameworks and climate-related financial risks.
4 November 2021
This biennial report assesses implementation of the FSB’s Principles and Standards for sound compensation practices.
Biennial progress report on the implementation of the FSB standards on compensation.
Biennial progress report on the implementation of the FSB standards on compensation.
10 November 2015
FSB compensation progress report shows good progress in implementing principles and standards with further work on compensation tools to address misconduct planned.
4 November 2014
The report reports on remaining implementation gaps and focuses on some of the key challenges and evolving practices in this area.
26 August 2013
This report focuses on remaining gaps and impediments to full implementation of the FSB Principles and Standards (P&S) and describes some of the key challenges and evolving practices in this area.
13 June 2012
This report describes the developments in implementing the FSB Principles and Standards (P&S) in their national regulation or supervisory guidance over the relatively short time period since the October 2011 thematic peer review.
