Federal banking regulators have issued additional guidance on the adoption of new compensation disclosure requirements for all federally regulated deposit-taking institutions.

In a letter to financial firms released Thursday, the Office of the Superintendent of Financial Institutions notes that the Basel Committee on Banking Supervision published new remuneration disclosure requirements in July, which, in Canada, applies to banks, bank holding companies and federally regulated trust and loan companies.

OSFI indicates that, consistent with Basel committee requirements, it expects all institutions to implement the remuneration disclosure requirements starting with the 2012 fiscal year-end; except for firms that have already been directed to implement the disclosures earlier to meet new requirements from the Financial Stability Board (those firms are required to report starting with the 2011 year end).

Additionally, OSFI says that, at a minimum, the disclosures should be made on an annual basis. It encourages firms to provide all related disclosures in one site or in one document, although institutions can choose the location and format for the disclosures. And, it notes that comparative disclosures to provide historical context are required to be disclosed starting with the 2013 fiscal year-end.

Certain types of disclosure may be exempted on the grounds that the information is proprietary or confidential. However, firms are required to maintain appropriate documentation in cases where such information is not disclosed, and OSFI reserves the right to review that documentation.

“The additional qualitative and quantitative disclosure requirements on remuneration help support effective market discipline and allow market participants to assess the quality of compensation practices and the quality of support for an entity’s strategy and risk posture. These requirements are designed to be sufficiently granular to allow meaningful assessments by users, while at the same time, avoiding disclosure of sensitive or confidential information,” it says.