But this suggestion is far from making unanimity in the professionBut they are this time clearly tinted greenYet in private experts are much less reserved on their doubtsThe risk the facetoface with a dead leaf and the location of development projects is preserveReform in times of crisis is certainly not easyAsia is therefore an environment preferredOne might even say that il dropped like a stoneFor the State it defends itself partiallyDespite this the account isn't there alwaysDifferent European places have adopted this year, variously binding principles, which will come into force next year. If the whole philosophy is still that of the g-20, texts are not all so far.
In the United Kingdom, the Financial Services Authority (FSA), Constable of the financial sector, announced in mid-August eight principles to better regulate the practice of the bonus in the City. Its code of conduct must be respected as of January 1, 2010, by 26 British financial institutions to convey here in late October a declaration stating their remuneration policy. A step is therefore made to the limitation of the unacceptable practices such as the guaranteed bonus over several years. But, under pressure from the banks, the text has been minimized on several points keys in relation to its initial version, presented in March. The principles obliging institutions to pay two-thirds of the bonus back and link the individual performance of an operator of the undertaking as a whole have thus become mere recommendations. Bankers had shaken the spectrum of the departures of traders to other more comprehensive places such as New York or Zurich. For the FSA, it is however a "first step", because it cannot "change the culture of the day to the next bonus."
l in Germany, the regulator of the financial sector, the BaFin, gave banks until 31 December to implement a package of measures that should index the bonus of the traders on their medium-term performance and nor their results of a single year. The variable remuneration should not represent too much of the total compensation to not create a dependency of the beneficiaries. If risky activities have led to losses, must repay all or part of their bonuses. The practice of severance benefits should be limited to not render inoperative the threat of possible refunds. But the BaFin has limited powers of review: it cannot interfere in individual contracts, because it has neither the right nor the necessary human resources. The association of private banks has approved these measures and indicated that some of its members had already implemented the bonus systems in which part of the bonus are blocked, waiting for any refunds.
l A Brussels, the issue of the bonus has been addressed in prudential terms. The draft revision of the directive on the adequacy of own funds adopted by the European Commission on 13 July thus contains a component on the policy of remuneration of the banks, in particular their traders. The goal is including more stringent capital requirements to banks which pay them exclusively criteria based on performance in the short term. Brussels considers indeed of such systems as a risk carrier, which requires mobilising additional own funds. But, for the Commission, such a weapon to be used as a last resort by the regulators, who may first ask the Bank to reduce the risks inherent in its device or even impose fines. The project must still be submitted to the Finance Ministers and European Parliament.
In Switzerland, rescue disaster for UBS by the taxpayer made the very sensitive question of bonuses. The banking giant had to aim its new system of remuneration by the authority of financial markets (Finma) which then published in June a draft circular valid for the whole of the sector, including insurance. Objective: enact standards for January 1, 2010. Considering himself more restrictive than the average European, Finma "follow with attention the evolution of the international environment in the coming months", for not to disadvantage its financial place. The circular outlines ten principles which are four governance. It also seeks transparency and wants to ban the risk taken disproportionate. As such, the "pool" of variable remuneration shall evolve based on the economic benefit in the long term, without the exceed, after cost of capital, and its distribution must not be based on criteria in the short term (indicators of volume or annual). More total compensation of a collaborator is high, plus the deferred share must be large (three years at least), and the latter must be indexed on the economic result to come, on the rise as downward, with the possibility of resumed upon the occurrence of unforeseen risks.
