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10 March 2010
The 2010 Financial Services Bill provides HM Treasury with a power to lay regulations requiring greater disclosure of banker’s pay. As part of the scrutiny process for the bill, the Government has today published draft regulations to members of the House of Lords. They will be used to understand how the Treasury will make use of the power being granted.
The draft regulations build upon Sir David Walker’s recommendations that there should be enhanced disclosure of remuneration for the largest banks and building societies that operate in the UK.
The requirement for this disclosure will sit alongside and complement the FSA's oversight over the system of rewards. It will enhance shareholders' ability to exercise effective governance over the remuneration paid in companies in which they are investors and enhance public confidence in the management of risk and reward.
The regulations will be further refined in advance of a full public consultation, which will take place after the Financial Services Bill gains Royal Assent. The disclosure regime is intended to come into force for annual reports in respect of 2010 issued in early 2011.