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UK regulatory matters

The Enterprise and Regulatory Reform Bill was published 23 May 2012.  Amendments relating to directors’ pay were announced on 20 June 2012 and published on 28 June 2012.  The Bill completed Committee Stage on 17 July 2012.  The Bill’s Report Stage and Third Reading in the House of Commons took place on 16 and 17 October 2012 (following some amendments published on 10 October 2012 which did not relate to executive pay).  It was introduced into the House of Lords on 18 October 2012, accompanied by a policy paper prepared by BIS.  It had its second reading on 14 November 2012 and the Committee Stage is due to start on 3 December 2012.

The consultation on revised remuneration reporting regulations (which would affect the content of directors’ remuneration reports) launched by BIS closed on 26 September 2012. At the time of writing, no response had been issued.

On 25 September 2012, the FSA published its finalised guidance – General Guidance on Proportionality:  The Remuneration Code (SYSC 19A) and Pillar 3 disclosures on remuneration (BIPRU II) (FG 12/19).  This sets out the FSA’s approach to applying the proportionality provisions when implementing the Remuneration Code.  On 5 October 2012 it published CP12/27 in which it proposes to amend the rules on voiding and recovery to make it consistent with this guidance.

The FSA has imposed new requirements relating to data collection on remuneration practices and firms’ reporting requirements (PS12/18 published on 1 November 2012).  These are to implement the guidelines issued by the European Banking Authority to clarify the collection of data required by CRD 3 (Directive 2010/76/EU).