Emma RadmorePRA is consulting on proposals to enhance proportionality of Pillar 3 remuneration disclosure requirements, by reducing the number of disclosures required for many smaller banks and building societies. This consultation...
Category - Remuneration
Laura WilesFCA Portfolio letter- wholesale brokers
FCA has written a portfolio letter to the wholesale broking sector. The letter notes that although generally brokers do not aim to take market risk in their core activities, there have been significant periods of...
Emma RadmoreEmployee fairly dismissed for failing to disclose that he had been made bankrupt
We have commented on the recent Employment Appeal Tribunal (EAT) decision in Pubbi v Your-Move.co.uk [2022] EAT 96 in which an employee was dismissed for failing to disclose that he had been made redundant, following up...
FIN. TeamFCA publishes new MIFIDPRU webpage
FCA has published a new webpage on how the MIFIDPRU Remuneration Code (SYSC 19G) applies to MIFIDPRU Investment firms. The webpage gives an overview of the Code and provides information on proportionality, performance...
Lucy HadrillPRA publishes policy statement on identification of MRTs
The PRA has published a policy statement (PS28/21) on the identification of material risk takers (MRTs) for the purposes of its remuneration regime. Following the feedback received on its proposals, the PRA has: made a...
Investment Association updates principles of remuneration
The IA has published amendments to its principles of remuneration for 2022. The main changes are on the following topics: ESG – companies should use ESG metrics that are quantifiable, appropriately stretching and linked...
PRA consults on the identification of material risk takers
The PRA is consulting on proposed changes in respect of the applicable requirements on the identification of material risk takers (MRT) for the purposes of the PRA’s remuneration regime. The proposed amendments...
FCA writes to RemCo chairs
FCA has written to the Chairs of Remuneration Committees within firms to set out its approach to remuneration this year and to highlight the areas RemCo chairs should be considering. Broadly, the Chair must remain...
FCA publishes second set of IFPR rules
FCA has published its second “near final” rules on elements of the new IFPR. These rules cover : own funds requirements firms acting as clearing members and indirect clearing firms basic liquid assets...
PRA updates MRT waiver
PRA has updated its list of modifications by consent to include an application to allow CRR firms to exclude from idenfication as MRTs employees who meet the pay-based criteria for the definition but are deemed not to...
ESMA consults on MiFID II remuneration requirements
ESMA is consulting on draft guidelines that aim to clarify certain aspects of the new MiFID II remuneration requirements, replacing the existing ESMA guidelines on the same topic, issued in 2013. The consultation paper:...
PRA updates on shareholder distributions by large UK banks
On 10 December 2020, the PRA published a statement on “Capital distributions by large UK banks” in which it set out guardrails for distributions to ordinary shareholders in relation to full-year 2020 results...
ESAs report on F&P, internal governance and remuneration
EBA and ESMA have reported on: assessment of suitability of members of the management body and key function holders under CRD V and MiFID 2. The guidelines focus on the revisions brought in by the IFR and their affect...
PRA updates on MRTs
PRA has published an update on the requirements applicable to material risk takers. The EU did not adopt an updated version of the MRT Regulation before the transposition date of CRD V, and so PRA is currently using...
PRA consults on correcting “higher paid MRT” definition
PRA is consulting on correcting an error in the PRA rulebook which currently means the definition of “higher paid material risk taker” is not aligned with PRA’s approach in SS 2/17. The error happened...
FCA and PRA issue statement on FSB UK remuneration peer review
FCA and PRA have issued a joint statement on the findings from the FSB’s peer assessment of the effectiveness of remuneration reforms in the financial sector. FCA has also updated a webpage to highlight the...
Duncan ScottPRA corrects MRT definition
PRA has noted a mistake in the Rulebook definition of “higher paid material risk taker” in Rule 1.3 of the Remuneration Part. The definition currently states that a person will be an HPMRT where: (a) their...
PRA issues statement on capital distributions
In July, the PRA announced its intention to undertake an assessment of large UK banks’ distribution plans for 2020. The PRA has now completed that assessment and, noting that economic uncertainty as a result of...
FCA publishes latest Conduct Questions update
FCA has published its latest report on its “5 Conduct Questions” initiative. It notes the changes that wholesale banking firms have been making to their conduct and culture as a result of it since 2015, and...
PRA consults on CRD V
PRA is consulting on changes to its rules, supervisory statements and statements of policy needed to implement parts of CRD V. This consultation is the first part of PRA’s preparation for implementation, and it...
EBA updates risk taker RTS
EBA has published its final draft RTS on the criteria to define material risk takers for CRD purposes. It has published the revised standards to define and harmonise the criteria across the EU. An individual member of...
Regulator Covid-19 update 1 April
Further updates from the regulators, in addition to FCA’s Dear CEO letter to retail investment firms, include: PRA welcoming the agreement by the boards of large UK banks to suspend dividends and buybacks on...
Extension of the Senior Managers and Certification Regime comes into force
The FCA has extended the Senior Managers and Certification Regime (SM&CR) to solo-regulated firms, including senior managers and certification staff in those firms. The SM&CR already applies to the banking and...
Investment firm legislation in OJEU
The Directive and Regulation making changes to existing laws on prudential requirements for, and supervision of, investment firms, have been published in the Official Journal. The legislation makes several significant...
FCA updates on Remuneration Code expectations
FCA has written its annual letter to RemCo chairs of Level 1 firms. The letter sets out what FCA has found on accountability, ex-post risk adjustments and diversity and inclusion. The letter: notes the responsibilities...
Wholesale brokers ignore Dear CEO letter at their peril
FCA has written a Dear CEO letter to wholesale brokers setting out its thoughts on the key harms the sector poses. The letter explains that MiFID 2 and MAR have significantly raised expectations on market participants...