The Basel Committee on Banking Supervision issues for consultation Pillar 3 Disclosure Requirements for Remuneration.
The Basel Committee believes that these disclosure requirements, developed in consultation with the Financial Stability Board, will support effective market discipline. Fernando Vargas, Chairman of the Committee's Task Force on Remuneration and Associate Director General for Banking Supervision at the Bank of Spain, explains that the disclosure requirements "will allow market participants to assess the quality of a bank's compensation practices and the incentives towards risk taking they support." He added that "these requirements should also contribute to promote greater convergence and consistency of disclosure on remuneration."
The Committee's proposed Pillar 3 disclosure requirements on remuneration add greater specificity to the disclosure guidance on this topic that was included in the supplemental Pillar 2 guidance issued by the Committee in July 2009. The proposals cover the main components of sound remuneration practices and take full account of the FSB's Principles for Sound Compensation Practices and their related Implementation Standards.
Comments should be submitted by Friday, 25 February 2011 by email to: [email protected] Alternatively, comments may be sent by post to the Secretariat of the Basel Committee on Banking Supervision, Bank for International Settlements, CH-4002 Basel, Switzerland. All comments may be published on the Bank for International Settlements's website unless a commenter specifically requests confidential treatment.
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