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Written question asked by Dai Davies (Independent (affiliation)) on Wednesday, 25 March 2009, in the House of Commons. It was due for an answer on Friday, 27 March 2009. It was answered by Angela Eagle (Labour) on Wednesday, 1 April 2009 on behalf of the Treasury.

Banks: Regulation

Question
To ask the Chancellor of the Exchequer what steps he plans to take on remuneration policies of banks in receipt of recapitalisation from the public purse in light of the recommendations of the Turner Report on the regulatory response to the global banking crisis.
Answer

The Government have taken a number of steps in relation to banks' remuneration policies, including imposing remuneration requirements as part of the recapitalisation programme and the Asset Protection Scheme (APS).The FSA is currently consulting on its code of practice on remuneration. Banks that participate in the APS are required to review their remuneration policies and come up with long-term strategies that prevent excessive risk-taking in line with the FSA's code of practice.UK Financial Investments Ltd. (UKFI), which manages the Government's shareholdings in financial institutions on a commercial and arm's length basis, has been overseeing the remuneration conditions attached to subscribing to the Government's recapitalisation fund, and the Treasury's Asset Protection Scheme. UKFI has worked to ensure management incentivisation based on long-term, sustainable performance and no rewards for failure, in order to protect the interest of the taxpayer as a shareholder.

Secondary information

Type
Written question
Reference
490 c1203W;490 c1199W; 267590
Session
2008-09
Subjects
Banks Pay
Link
View this Written question on www.publications.parliament.uk