The U.K. government has moved to add some extra kick to the Financial Services Authority’s efforts to stop banks and other financial firms using pay and bonus deals that encourage excessive risk taking.

Last year the FSA published a draft code of conduct on remuneration that said firms must “establish, implement, and maintain remuneration policies, procedures, and practices that are consistent with and promote effective risk management.”

The government now says the FSA will have to give it a report each year setting out how well firms are complying with the code and giving a judgment on whether remuneration practices are creating risks.

However, it has decided not to introduce any tougher measures on pay, such as a cap on the amount executives at state-supported banks can earn.

The measure is one of the few concrete actions included in a new government White Paper on financial sector regulation. The paper explores the reasons behind the financial crisis and sets out how the government plans to respond to the recommendations of the Turner Review, which looked at why U.K. financial regulation failed to exercise better supervision of banks.

The government is expected to announce further regulatory reforms when it receives an interim report from Sir David Walker, who it asked to review the quality of corporate governance at banks and other financial firms. The report is due by the end of July.

The White Paper acknowledged that there were “serious deficiencies in the corporate governance of many banking institutions.”

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