This feed is published daily with selected new or updated
content from across the Lowtax Network. For a list of Lowtax Network
sites, many of which feature daily news, see
below.
Providing essential tax news and information
for globally mobile artists, contractors, entrepreneurs, professionals,
small businesses, sportspersons and entertainers.
Lowtax Portal:
'Low-tax' business and investment in the top 50 jurisdictions covered in
exceptional detail.
Tax News: Global
tax news, continuously updated through the day.
Investors Offshore:
The independent offshore and alternative investment guide for expatriates
and the globally aware investor.
Law & Tax
News: Daily news and background data on tax and legal developments
for international business.
Offshore-e-com:
A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library:
One of the web's largest and most authoritative business and investment
information sources.
US Tax Network:
The resource for free online US taxation information, covering: corporate
tax, individual tax, international tax, expatriates, sales and e-commerce
tax, investment tax.
NEW! Personal
Business Tax Guide: Providing essential tax news and information
on business for contractors, entrepreneurs, professionals, small businesses,
artists, sportspersons and entertainers.
FINMA To Monitor Swiss Banking Remuneration,
by Ulrika Lomas, Tax-News.com, Brussels
Tuesday, June 23, 2009
FINMA is opening the consultation period for the Circular on remuneration systems,
which will enter into force on January 1, 2010. The Circular will have a direct
impact on the remuneration systems of the financial institutions concerned. It
will aim to 'ensure that remuneration systems do not provide incentives to take
inappropriate risks that could threaten the stability of financial institutions'.
Under FINMA’s plans 'financial institutions will have to structure their
variable remuneration packages (bonuses) on a sustainable and long-term basis
in line with economic profit while taking into account the costs related to
all risks entered into. Furthermore, Boards of Directors will have to discharge
their duties more carefully. They are responsible for the remuneration policy
of the entire company and will have to disclose the company’s remuneration
policy in a remuneration report.' The consultation period for the Circular will
run until August 14, 2009.
Inappropriate risks and false incentives can threaten the stability and profitability
of a financial institution, according to FINMA. In accord with international committees
such as the Financial Stability Board and financial market supervisory authorities
abroad, FINMA is proposing that, based on the organisational requirements of
effective financial market legislation, the remuneration policy of financial
institutions be made subject to supervisory regulation. In contrast to comparable
international regulations, the Circular will apply not only to large, systemically
relevant banks, but to all financial institutions supervised by FINMA.
FINMA views variable remuneration as the employees' stake in the success of
the company and requires that all variable remuneration paid out must actually
have been earned by the company over the long term. By contrast, variable remuneration
is not paid if a company does not perform well. FINMA defines success based
on economic profit. As a result, a company only creates added value if an excess
remains after deducting the full risk-adjusted cost of capital. The more sustainable
a company’s positive performance, the more employees can benefit from
variable remuneration.
FINMA is to require that the criteria used to award variable remuneration are
not based on the short-term performance of individual company units and employees.
This is to prevent employees pursuing targets that have little to do with the
long-term success of the company or that do not take into account the risks
entered into. Deferred remuneration components must be subject to fluctuations
in value during the holding period so as to further increase risk awareness
and the incentive for sustainable business, state FINMA. If the company performs negatively,
deferred remuneration should make up the majority of the variable remuneration in the view of FINMA,
as it is linked to the company’s success and only increases in value once
the economic situation of the company has improved.
FINMA is to increase market discipline by introducing new transparency and
reporting obligations.
The proposed provisions with regard to transparency go beyond specific initiatives
on an international level and the current requirements under Swiss law. While
the current company and stock market disclosure legislation only requires disclosure
of the remuneration received by senior management, FINMA is calling for summary
disclosure of the remuneration structure for all employees.
FINMA has opened the public consultation phase and is inviting all supervised
entities and other interested parties to submit suggestions to FINMA. These
suggestions must be received by August 14, 2009. It plans to set out the definitive
provisions in September 2009, with the Circular entering into force as of January
1, 2010. This will give financial institutions a transitional period during
which they can bring their remuneration systems into line with the new requirements.
FINMA expects the remuneration systems of all financial institutions concerned
to comply with the principles set out in the Circular from January 1, 2011 onwards.
However, UBS is already having to measure itself against a strict benchmark
in 2009. Although the Circular on remuneration systems will not enter into force
until the start of 2010, UBS must comply with the principles contained in the
Circular during the 2009 financial year. This stems from the agreement between
the Federal Department of Finance, the Swiss National Bank and UBS as part of
the package of measures approved in autumn 2008. FINMA will monitor UBS’s
implementation of these measures.
One of the web's largest and
most authoritative business and investment information sources. Alongside
topical, daily news on worldwide
tax developments, you can receive weekly newswires or
access up-to-date intelligence
reports on a range of legal, tax and investment subjects.
Our 16 constantly updated
intelligence reports cover every important aspect of 'offshore' and international
tax-planning in depth, including banking secrecy, the EU's savings tax
directive, offshore funds, e-commerce, offshore gaming and transfer pricing.
Reports are available for immediate downloading or as subscription
services with news pages.
Advertising & Marketing
With over 50,000 qualified readers every month our web-sites
offer a number of cost effective, targeted advertising,
sponsorship and marketing opportunities:
Display advertising - from 'skyscrapers' to 'buttons'
Content/article submission and sponsorship
Opt-in email marketing
On-line Services Directory listings
Could your corporate web-site or newsletter benefit
from incorporating regularly updated news and content
tailored to serve your clients' interests? We can provide
a variety of maintenance-free news and content solutions
that can be seamlessly integrated and dynamically delivered:
Click here for a brief introduction
to RSS and instructions on how to get the Tax-News feed.
IMPORTANT NOTICE: THE LOWTAX NETWORK has
taken reasonable care in sourcing and presenting the information contained on
this site, but accepts no responsibility for any financial or other loss or damage
that may result from its use. In particular, users of the site are advised to
take appropriate professional advice before committing themselves to involvement
in offshore jurisdictions, offshore trusts or offshore investments. All materials
on this site copyright THE LOWTAX NETWORK 1999 to 2010. Contact
us for further information.
TAX-NEWS.COM
Free Tax-News Feed