UK: Financial Services Act 2010 - explanatory notes published

Explanatory notes for the Financial Services Act (2010) have been published today on the OPSI website: see here (html) or here (pdf).

Notes:

[a] Section 4 of the Act provides that HM Treasury "may make provision by regulations about the preparation, approval and disclosure of executives’ remuneration reports". An executive remuneration report is defined as one "containing information about (a) the remuneration of relevant executives of an authorised person, or (b) anything connected with the remuneration of relevant executives of an authorised person". The directors of a company authorised by the Financial Services Authority fall within the definition of relevant executives.

[b] Section 6 of the Act inserts a new section (139A) into the Financial Services and Markets Act (2000), which imposes a duty on the FSA to make rules requiring persons authorised under the FSMA, or a class of authorised persons identified in FSA rules, to have and implement a remuneration policy.