London, 10 January 2010

The Financial Stability Board (FSB) has launched a peer review of implementation of the FSB Principles for Sound Compensation Practices and their Implementation Standards. The Principles and Standards were endorsed by the G20 Leaders at their Summits in London in April 2009 and Pittsburgh in September 2009. In their Pittsburgh statement, G20 Leaders tasked the FSB “to monitor the implementation of FSB standards and propose additional measures as required by March 2010.”

The peer review on compensation will focus on the steps being taken or planned by FSB member jurisdictions to ensure effective application of the Principles and Standards, as well as progress to date in implementation by significant financial institutions. A template (attached) to collect information from national authorities was distributed to FSB members in December 2009, and the responses will be analysed and discussed by the FSB. The initial review is to be completed by March 2010 and the report will be published.

As part of this review, we welcome feedback from financial institutions and other stakeholders on practical experiences in implementing the FSB Principles and Standards (or the respective national rules) – including descriptions of how compensation arrangements at financial institutions have changed in practice (governance, pay structures, risk adjustments), areas where implementation is proving challenging, and issues of consistency in regulatory responses across sectors and jurisdictions. Feedback can be submitted by 1 February 2010 to This e-mail address is being protected from spambots. You need JavaScript enabled to view it under the subject heading “FSB Thematic Peer Review on Compensation.” Individual submissions will not be made public.

The peer review is the first such review under a new FSB Framework for Strengthening Adherence to International Standards. Further information on the overall framework is available in the press release following today’s FSB Plenary meeting and on the FSB website.

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For further information on the FSB, visit www.financialstabilityboard.org

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