UK: Banking reform - Government rejects remuneration amendments but promises new disclosure obligations

The Financial Services (Banking Reform) Bill has completed the committee stage in the House of Commons, earlier than expected, and now proceeds to report stage: see here. Amongst the amendments considered was one requiring employee representation on bank remuneration committees and another providing for banks' shareholders to appointment remuneration consultants. Neither of these amendments was accepted by the Government but the Financial Secretary to the Treasury, Rt. Hon. Greg Clark MP, stated that the Government would amend the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to require quoted companies (not just banks and financial institutions it would seem) to disclose: whether anyone has provided advice to the remuneration committee; if so, who; whether that person or body has provided any other services to the company; who appointed the group or individual; how they were selected; the cost of that advice; and the basis of payment.

NB: The UK Corporate Governance Code 2012, in section B.2.1., provides: "Where remuneration consultants are appointed, they should be identified in the annual report and a statement made as to whether they have any other connection with the company."