This draft Code sets out the main rules, evidential provisions and guidance on remuneration which the FSA is proposing to incorporate into its Handbook.

It is a revised version of the Code originally published on 26 February 2009. It will not apply until the FSA’s final Code is approved and implemented. If the proposal goes ahead, we currently plan to publish the final version in late July 2009 with the Code in force from November 2009. Until then, firms should regard the code as a benchmark for good practice, building on our October 2008 ‘Dear CEO’ letter.

This Code applies directly to the larger banks and broker dealers (for a full definition of the scope please see CP 09/10, Appendix 1, SYSC 19.1.1R). The FSA encourages all firms to review their compensation policies against the general requirement and the principles in this Code.

FSA draft code on remuneration practices [PDF]