Remuneration codes - For banks, building societies and investment firms
31 January 2019
The financial services industry has been the focus of wide-ranging reform over the past few years as a result of both UK Government and European initiatives.
In January 2014, a package of reforms implementing the fourth set of amendments to the EU Capital Requirements Directive (“CRD4”) took effect. These reforms built on the remuneration requirements of the third set of amendments to the Capital Requirement Directive (“CRD3”) which aimed to align remuneration principles in banks, building societies and investment firms across the EU. In particular, CRD3 imposed restrictions affecting the structure and timing of bonus payments. CRD4 went a step further and imposed restrictions on the quantum of variable remuneration under the so-called “bonus cap”.
This Inbrief gives an overview of the various Remuneration Codes issued by the Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”) (collectively the “UK Regulators”) which take into account the requirements of “CRD4” and other developments.
To read the full in brief please click 'download files'.