Does your remuneration policy put you at risk?
Incentives and remuneration can lead to mis-selling. Of course, they can also lead to motivated staff, so you need to strike the right balance. It is up to senior management to ensure that the structure, operation and outcomes of the firm’s incentive scheme are subject to rigorous oversight and monitoring. Policies must not run the risk of contravening TCF initiatives.
Remuneration Policy applies directly to around 2,500 firms including banks, building societies, the majority of hedge fund managers and many other financial services firms. All firms however should review their compensation policies against the general requirement and principles. It applies not only to bonuses and incentives but to all aspects of remuneration which could affect risk management, including salary, incentive plans, pensions and severance payments.
In February 2013 TCC produced a white paper on this subject which can be accessed here.
TCC can assist firms by providing independent oversight to assess the business and regulatory risks of their incentive schemes, and implement an effective monitoring framework.
If you are concerned about your remuneration policy please contact us and we will be happy to help guide you through to completion of a vigorous policy and on-going monitoring. For more information, please call us on 0800 970 9754 or email IanStott@theconsultingconsortium.com