Thursday, 13 August 2009

UK: Sants defends FSA's remuneration code

"Watchdog 'gives green light' for huge City bonuses" is the headline of a front page report in today's Times newspaper, following publication yesterday of the Financial Services Authority's remuneration code. The FSA's chief executive, Hector Sants, has addressed this and other criticism in an interview this morning on the BBC Radio 4 Today programme (listen here). Mr Sants repeated the point that he has made already with regard to the FSA's role: it is not the regulator's role to challenge the remuneration of individuals where remuneration within firms is consistent with effective risk management. Mr Sants added that where remuneration - particularly bonuses - is seen by many to be excessive relative to rewards elsewhere in society, that is a matter for Government. 

Update (13 August 2009): Mr Sants' comments have been reported here and here by, respectively, the Guardian and Telegraph newspapers. 

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