FSB全球金融稳定委员会-Implementing-the-FSB-Principles-for-Sound-Compensation-Practices-and-their-Implementation-Standards_-Sixth-progress-report_16页_571kb

Summary of FSB Member Jurisdictions' National Regulation and Supervisory Guidance on Compensation

Core Content

This summary provides an overview of the national regulations and supervisory guidance on compensation practices in FSB member jurisdictions, focusing on the alignment with FSB Principles and Standards and the implementation of Basel Committee guidelines, particularly Pillar 3 disclosures.

Key Jurisdictions and Their Regulations

Main Points and Key Information

• Regulatory Alignment: Most jurisdictions have aligned their compensation regulations with the FSB Principles and Standards, as well as Basel Committee guidelines, particularly Pillar 3 disclosures.

• Legal Frameworks: A variety of legal frameworks govern compensation, including specific laws, decrees, and regulations. For example, in Australia, the Banking Act 1959 and Prudential Standard CPS 510 are in place, while in China, supervisory guidelines for commercial banks are issued by the CBIRC.

• Supervisory Guidance: Many countries provide non-enforceable supervisory guidance to support the implementation of compensation policies. These include guidance on remuneration benchmarking, data collection for high earners, and the alignment of compensation systems with risk appetite frameworks.

• Bonus Caps and Variable Compensation: The Netherlands has a 20% cap on variable compensation relative to fixed compensation, with exceptions for employees working mainly outside the EU. Spain and the UK also have similar requirements.

• Claw Back and Severance Pay: Jurisdictions such as the Netherlands and Spain have introduced claw back mechanisms and restrictions on severance pay for executives, particularly those in institutions receiving public support.

• Corporate Governance: Corporate governance is a key component in many regulations. For instance, the UK and Singapore have guidelines on corporate governance for banks and insurers, while France and Italy reference the FSB Principles and Standards in their legal frameworks.

• Disclosure Requirements: Several countries have implemented disclosure requirements for remuneration data, including the Netherlands and Hong Kong. These disclosures are often part of Pillar 3 requirements.

• Insurance Sector: The insurance sector is covered in some jurisdictions, such as France, Germany, and the UK, with specific regulations and guidance tailored to their needs.

• Non-Enforceable Guidance: Many supervisory guidance documents are non-enforceable, serving more as advisory frameworks. Examples include the UK's PRA Supervisory Statement and the Netherlands' Regulation on sound remuneration policies.

• Language and Accessibility: Some guidance documents are available only in the local language (e.g., Portuguese for Brazil, Russian for Russia), which may limit their accessibility to international stakeholders.

• Continuous Updates: Regulations and guidance are frequently updated to reflect new standards and requirements, as seen in the Netherlands, France, and Singapore.

• Sector-Specific Requirements: Different sectors (banking, insurance, securities, etc.) often have specific requirements, such as in the UK where the Senior Managers and Certification Regime has been extended to insurers and non-banking sectors.

• Risk Alignment: There is an emphasis on aligning compensation with risk management practices, as seen in the guidelines from the Bank of Italy, Spain, and the UK.

Conclusion

The summary highlights the comprehensive regulatory and supervisory frameworks in place across FSB member jurisdictions to ensure sound compensation practices. These frameworks generally include both legal mandates and supervisory guidance, often referencing FSB Principles and Standards and Basel Committee guidelines. The focus is on aligning compensation with risk management, transparency, and accountability, while also addressing the need for disclosure and claw back mechanisms. Despite the diversity in legal systems, there is a clear trend towards incorporating international standards to enhance financial stability and governance.