Regulatory Alerts2016-09-26
Added · Updated
PS17/10: Remuneration in CRD IV Firms
The UK Financial Conduct Authority and Prudential Regulation Authority issued this policy statement to finalize remuneration rules for CRD IV firms, implementing EU directive requirements to align compensation structures with prudent risk management. The document mandates that firms establish remuneration policies that prioritize long-term performance, limit variable pay ratios, and ensure a significant portion of incentives is deferred and subject to malus or clawback provisions. It further requires detailed public disclosure of remuneration practices and establishes supervisory expectations to prevent compensation frameworks from incentivizing excessive risk-taking.
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