PRA and FCA proposals to revamp bankers’ remuneration rules would reduce the number of in-scope material risk takers (MRTs), while enabling more MRTs to benefit from proportionality exclusions. Banks would have greater autonomy when identifying MRTs but would need to tighten governance guardrails.
In the PRA and FCA’s joint consultation paper (PRA consultation paper 16/24 | FCA consultation paper 24/23) on bankers’ remuneration reform, they propose simplifying MRT rules to tailor them more for the UK while reducing costs and increasing flexibility for banks. For our more detailed commentary on the MRT proposals and their impact, as well as action areas for banks, please download the PDF version of this alert. For more background on the reforms, and on the “banks” within the scope of the rule changes, please see our earlier blog UK bankers’ remuneration: significant reform proposals.
Please see full publication below for more information.
