FSA code won't prevent further rewards for failure, experts warn

The remuneration code of practice, published by the Financial Services Authority (FSA), falls short of the detailed reform to the banking system needed to prevent so-called “rewards for failure”, experts have warned.

Published in draft, the regulator's guidelines attempt to stem the pay incentives that led to excessive risk-taking by bankers – a major contributor to the near collapse of many of the world’s financial institutions.