FSB-IOSCO Roundtable On Compensation Practices In The Securities Sector

This note provides a summary and main takeaways from a roundtable organised jointly by the FSB and the International Organization of Securities Commissions (IOSCO) on compensation practices in the securities sector on 13 December 2016.

Based on the findings of the FSB fourth progress report on compensation practices, the FSB agreed in 2015 that its Compensation Monitoring Contact Group should discuss, together with IOSCO, compensation practices in the securities sector to gather further information about current practices. As a result, the FSB and IOSCO agreed to organise an industry roundtable to discuss compensation and related governance and risk management issues.

The roundtable, which was designed as a fact-finding exercise, helped to exchange views on similarities and differences in firms’ approaches to compensation issues in the securities sector.

Further details on compensation practices in the securities sector will be included in the FSB’s fifth progress report on Implementing the FSB Principles for Sound Compensation Practices and their Implementation Standards to be published in advance of the G20 Leaders’ Summit in July 2017.

The FSB and IOSCO welcome any feedback on topics discussed at the roundtable and summarised in this note. Comments, which may be made public, should be sent to Simonetta Iannotti (simonetta.iannotti@fsb.org) and Alp Eroglu (a.eroglu@iosco.org) by 15 May 2017.

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