MPs warn banks on code of conduct, legislation looms

MPs are prepared to give banks until September to comply with their own code of conduct on executive pay or face new legislation, it emerged at a meeting with finance minister Jan Kees de Jager on Monday.

MPs from the parliamentary finance committee are ‘extremely critical’ of the way large bonuses have made a return in financial circles, news agency ANP reported.
A report on compliance with the code is due to be published in August. If it does not show progress has been made, legislation is on the cards, MPs said.
‘Bank CEOs do not feel the urgency,’ Matthijs Huizing, an MP with the conservative Liberal VVD said. CDA MP Elly Blanksma said banks are spending too much time explaining why they have not complied.
The code came into effect on January 1 2010 with the aim of giving banks clear duties in terms of risk management, remuneration policy and regulation. New bankers also have to swear an oath that they will operate ethically.
An interim report last year claimed the code – based on the principle of self-regulation – is being widely flouted.

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