The Financial Conduct Authority has outlined areas for financial services firms to consider when setting their remuneration policies and practices, following its recent removal of the bankers' bonus cap.
Along with the Prudential Regulation Authority, the FCA moved to scrap the cap on bankers' bonuses last week (25 October) in a bid to give firms more independent freedom to restructure their own pay allowances. In a letter addressed to the chairs of the remuneration committees of UK financial services firms, executive director of consumers and competition Sheldon Mills said the changes were introduced to make the remuneration regime more "effective". Through these changes, the regulator hopes to increase the "proportion of compensation at risk and subject to the incentive-setting tool...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
