As we have noted before Deutsche Bank is shaping up as an appealing place to work: it ranked second for accrued compensation in the first half; it also falls outside the FSA’s remuneration code, to be imposed in January 2010.

The code has been watered down from what it was, but still outlaws guarantees for more than one year and carries the threat of higher capital reserves for banks that don’t uphold the spirit of the FSA’s proposals (deferred payouts, discouragement of risky behaviour etc.).

As an EU firm which operates in the UK under the EU’s passporting rules, Deutsche isn’t subject to the FSA’s restrictions. Neither are BNP Paribas or SocGen, but both look set to be hit by substantially harsher compensation restrictions imposed by the French government.

The FSA is being distinctly cagey about the 26 firms that will be impacted by its new code. “It’s private between us and the institutions concerned,” says a spokesman. “It applies to the largest systemically important banks, building societies and broker dealers.”

As we noted earlier, Deutsche has hired lots of senior M&A bankers this year, mostly from Merrill Lynch.

Prior to its acquisition by BofA, regulatory lawyers say Merrill would also have evaded the FSA’s code as its European operations were based in Dublin and passported into the UK. Sadly (for Merrill bankers), this is no longer the case.