The PRA and FCA have proposed new rules to integrate the UK’s remuneration regime and accountability regime under the SMCR more closely, including a requirement for firms to consider adjusting MRTs’ variable pay (using malus or clawback) where it is reasonable to hold them responsible for misconduct that occurred ‘on their watch’.
As part of our series on UK bankers’ remuneration reform, our regulatory investigations colleagues Sarah Hitchins and Mark Teasdale have written this blog on the PRA and FCA’s proposals to hold individuals to account through remuneration adjustments: UK regulatory reform: Emphasising individual accountability through remuneration.
Our final blogs in this series will focus on the proposals to relax deferral and retention periods, and to simplify FCA remuneration rules. For our previous blogs, please see UK bankers’ remuneration: significant reform proposals and UK bankers’ remuneration reform: MRT proposals in focus.
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