The Financial Services Authority will not be extending its code on compensation policies beyond large banks, brokers and mortgage firms, the UK regultor said Tuesday.

The FSA’s new remuneration code comes into force on January 1, 2010. Earlier this year, the regulator published a consultation paper inviting discussion on whether the code should be extended to other FSA-authorized financial industry firms.

On Tuesday, the FSA announced that it has decided not to introduce any new rules and will not extend the rules to other sectors. The FSA has already committed to review the effectiveness of the remuneration code in mid 2010, and says that it does not think that it would be beneficial to make further changes now as adjustments to the existing code will be required in response to European directives that also deal with compensation.

The regulator added that its current supervisory focus is on “ensuring that the firms which are within the initial scope of the remuneration code are fully compliant” from January 1.

IE