Regulatory Alerts2026-07-13
Added · Updated
CP26/27: Remuneration: Solo-regulated firms’ rules reform
The FCA proposes replacing the AIFM, UCITS, and MIFIDPRU remuneration codes with a single consolidated code (SYSC 19AA) for solo-regulated firms, shifting from prescriptive rules to an outcomes-focused framework. The new regime excludes small and non-interconnected MIFIDPRU firms and applies general requirements to all staff while imposing targeted principles on material risk takers. Mandatory deferral, malus, and clawback requirements are removed in favor of principles-based governance, with deferral structures determined by management bodies rather than fixed regulatory thresholds. The changes are anticipated to take effect in Q1 2027, with AIFM provisions applying in two stages aligned with wider AIFM reforms.
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