FSB to check up on G20 bonus curbs implementation

By Huw Jones

ST ANDREWS, Scotland (Reuters) - The world's top countries will be checked on whether they are sticking to new rules on curbing bank bonuses, a global supervisor said on Saturday following calls from France for strict compliance.

"The timing of this implementation is not immediate. The French questions can be answered by the review," Financial Stability Board (FSB) Chairman, Mario Draghi, told reporters.

"The members of the FSB and the G20 will lead by example," Draghi said, but it was unclear what sanctions could be taken for non-compliance apart from public glare.

He was speaking after updating finance ministers from the G20 group of countries on progress in implementing regulatory measures agreed by their leaders in September as part of efforts to learn from the credit crunch and cut risk in markets.

The FSB has been tasked by the G20 to make sure that a wide range of new financial regulation is applied consistently across the world so that countries do not try to take advantage.

"Since Pittsburgh, action has been taken by several countries in implementing the FSB principles. France, Italy, Switzerland, UK and United States have taken action," Draghi said.,

"Others are coming shortly, Canada, Brazil and Germany. We will develop a template to be used for the peer review that we will conduct by March 2010. There is great interest in seeing countries do implement these principles across the board."

France was concerned its banks would be disadvantaged if the United States interpreted the G20 bonus curbs more loosely.