FSA: Corporate banking regulations examined

Corporate banking regulations are being examined by the Financial Services Authority (FSA), following the implementation last year of the Remuneration Code.

Designed to encourage effective risk management, it applies to corporate banking groups, as well as building societies and investment brokers.

The FSA investigation will focus on strengthening the code in a number of ways and the body is seeking consultation from relevant stakeholders.

Scope and application will both come under scrutiny, as the association attempts to fine-tune the activities to which the guidelines apply, as well as develop a clearer definition for which members of staff within an organisation should be subject to the rules.

One of the FSA objectives is to maintain market confidence and this latest report may be partially devised to reassure the public of the quality and integrity of the corporate banking sector.

Bonuses will also be looked at by the review, which seeks to outlaw the guaranteeing of financial perks for more than one year running.ADNFCR-2318-ID-19914428-ADNFCR