Regulators consult on removing bonus cap limits

The FCA and PRA have released their consultation paper (PRA CP 15/22 | FCA CP22/28) on their joint proposed rule changes to remove the existing limits on the ratio between fixed and variable components of total remuneration (the ‘bonus cap’).

The consultation closes on 31 March 2023 and changes are proposed to take effect for firms on the first performance year commencing after the publication of the policy statement (2024/2025 performance year for most firms).

The regulators have consulted jointly to avoid unnecessary duplication.