On July 30, the Prudential Regulation Authority (PRA) issued a policy statement in respect of responses received to its consultation on proposals to extend the Remuneration Code to require all PRA-authorized firms to ensure that vested bonus awards can be clawed back from individuals where necessary. Appendix 1 of the policy statement contains the final rules on bonus clawback, which will enter into force on January 1, 2015. Policy Statement.
Remuneration Code
FSA Implementation of the Remuneration Code
On April 19, the Financial Services Authority issued guidance to banks, building societies and Capital Adequacy Directive investment firms on compliance with the Remuneration Code, as modified and extended on January 1. The FSA issued guidance on general compliance with the Remuneration Code’s compensation rules as well as on varying the proportionality tier of a firm. The FSA is seeking consultation on its general guidance by May 18. General Compliance Guidance. Self-Assessment of Compliance for Tier 2. Self-Assessment of Compliance for Tiers 3 and 4. Retention Periods. Guaranteed Variable Remuneration. FAQ on the Remuneration Code. Proportionality Tier Guidance.