The Financial Stability Board (FSB) has published a consultation on Supplementary Guidance to the FSB Principles and Standards on Sound Compensation Practices.

The FSB’s proposed supplement guidance is not meant to set new standards or principles (the existing implementation standards and guidance can be accessed here and here) but rather seeks to elaborate on the existing guidance and provide firms and supervisors with a framework for considering how compensation practices and tools, such as in-year bonus adjustments, malus and clawback, can be used to reduce misconduct risk and address misconduct incidents. 

Responses are due by 30 August. If you would like to contribute to the response, or if you have any questions in relation to this, please contact Jennifer Wood.