Financial services firms must disclose more details on pay: Basel Committee publishes Pillar 3 remuneration disclosure requirements

The Basel Committee has published its final proposals in relation to Pillar 3 remuneration disclosure requirements which will apply from 1 January 2012. The requirements are similar to those already implemented by the Financial Services Authority (FSA) in its Remuneration Code but are much more explicit in terms of the level of detail required, particularly in relation to the link between pay and performance, and risk adjustment.

The proposals from the Basel Committee go some way to creating a level playing field globally in terms of remuneration disclosure. But there may be a challenge for regulators in some jurisdictions (particularly outside the EU) to implement the recommendations by the proposed implementation date.