SYSC TP 3 Remuneration code

11	R	TP 3 applies to a firm that is unable to comply with the Remuneration Code general requirement because of an obligation it owes to an employee (the “obligation”) under an agreement entered into on or before 18 March 2009 (the “agreement”).
2	R	A firm’s compliance with the obligation shall not cause it to be in breach of the Remuneration Code general requirement provided that the firm complies with 3R.
3	R	(1)	Where a firm is entitled to amend the agreement in a way that enables it to comply with the Remuneration Code general requirement it must do so at the earliest opportunity and no later than 31 March 2010.
		(2)	Otherwise, a firm must:
			(a)	take reasonable steps to amend the obligation or terminate the agreement at the earliest opportunity;
			(b)	amend the obligation or terminate the agreement no later than 31 December 2010; and
			(c)	adopt specific and effective arrangements, processes and mechanisms to manage the risks raised by the obligation.
4	G	By 1 January 2010, a firm should have at least initiated a review of the extent to which the measurement of performance for any existing long term incentive plans takes account of future risks. The FSA may discuss the timing of that review and any remedial action with the firm.

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