In this context, the EU was leading the international agenda in developing further guidance to align compensation practices with long-term value creation and discourage excessive risk-taking in the short-term. To recall, the G20 leaders in Pittsburgh in September endorsed the FSB implementation standards that aim to defer bonus payments, disallow guaranteed bonuses, and introduce a claw-back clause.
Recent proposals on how to strengthen the prudential framework In addition, agreement has been reached globally on a comprehensive set of measures to strengthen the prudential framework in response to the crisis. In the EU, the Commission’s proposal for an amendment of the Capital Requirements Directive of July 2009 includes the internationally agreed stricter requirements for trading book and re-securitisations.