FSB publishes final version of supplementary guidance on sound compensation practices

The Financial Stability Board (FSB) has published the final version of its Supplementary Guidance to the FSB Principles and Standards on Sound Compensation Practices.  It consulted upon this guidance in June 2017, as part of its work on misconduct risk management.

The Guidance is aimed at ‘significant’ firms and supervisors, and provides a framework to consider the use of compensation practices and tools, such as malus or clawback to address practices relating to misconduct.