FINMA Circular 10/1 on remuneration schemes

On 1 January 2010, the Circular 10/1 of the Swiss Financial Market Supervisory Authority (FINMA) on remuneration schemes has come into force. The Circular defines minimum standards for the design, implementation and disclosure of remuneration schemes of financial institutions, and lays down some basic principles for variable remuneration (in particular bonuses) and deferred remuneration models. The Circular must be fully complied with as of 1 January 2011. It supplements the provisions of the Swiss Code of Obligations as well as the remuneration related disclosure provisions set out in the Swiss stock exchange regulations.