Consultation opens
26/11/2024
26/11/2024
Consultation closes
13/03/2025
CP24/23: Remuneration reforms
We set out, jointly with the Prudential Regulation Authority (PRA), proposed amendments to the dual-regulated firms’ remuneration regime.
Why we are consulting
We want to make the dual-regulated firms’ remuneration regime more effective, simple and proportionate in meeting its aim of ensuring accountability for risk taking, while supporting our secondary objective to facilitate the international competitiveness of the UK economy and its growth.
The changes also help ensure appropriate outcomes for consumers and markets.
Who this is for
- Banks
- Building societies
- PRA-designated investment firms
It will also be of interest to
- firms in scope of the FCA’s MIFIDPRU Remuneration Code (SYSC 19G)
- solo-regulated investment firms and firms that are members of a group to which the dual-regulated remuneration regime applies on a consolidated basis
Next steps
Send your feedback to [email protected] by 13 March 2025.
Background
In continuation of the post-Brexit reforms, we, alongside the PRA, want to remove complexities and clarify core aspects of the dual-regulated firms’ remuneration framework. Our aim is to support and maintain the regime’s effectiveness, while supporting the international competitiveness of the UK financial sector and economic growth in the medium to long term.
Our changes remove unnecessary duplication of rules between the regulators, streamline the remuneration regime for firms, and further strengthen the reputation of the UK banking sector.
Our proposals complement changes introduced in 2023. Specifically, the removal of the bonus cap and enhancements to proportionality for small dual-regulated firms.
: Link changed Link updated