UK regulators threw the spotlight on bankers pay today after Chancellor Alistair Darling said he required the Financial Services Authority to report annually on how well financial firms align their pay practices with sound risk management rather than short-term gain, and how the regulator penalises those that fall short on that front.

The new requirement for feedback from the FSA on remuneration compliance was contained in the long-awaited paper from the UK Treasury outlining the Government's views on the future of financial regulation, which was released today and is expected to heavily influence oversight of the country's financial services industry in the lead up to the next year's general election.