The UK Financial Services Authority has published a weighty consultation paper that sets out proposed changes to the existing remuneration code and for most, it is proposed these changes will come into effect on January 1, 2011. As a result firms affected are already reviewing their remuneration policies to check that they will be compliant in the way they reward their staff.

The existing remuneration code covers the largest banks, building societies and broker dealers - something like 27 firms. The new code will be extended to cover over 2,500 firms in the form of all banks, building societies, asset managers, hedge funds, stockbrokers and others regulated in the financial services sector. It follows that the number of people affected is going to be massively increased. If you work for one of the firms targeted by the expanded code, you can expect it to impact on the way in which you are remunerated if you are what the code refers to as "code staff". Code staff include senior management and anyone whose professional activities could have a material impact on a firm's risk profile.