UK Financial Conduct Authority Publishes Policy Statement on Remuneration for CRD IV Firms
On May 3, the UK Financial Conduct Authority (FCA) published a policy statement (PS17/10) to help firms subject to the Capital Requirements Directive (CRD IV) understand the rules applying to their remuneration policies and practices.
The FCA states that they have aligned the provision of PS17/20 with the European Banking Authority (EBA) Guidelines (Guidelines) on sound remuneration policies, which were published in December 2015 and came into force on January 1, 2017. The FCA states that the amendments their Handbook contained in PS17/10 are being made so that the Handbook complies with the Guidelines.
PS17/10 contains non-Handbook guidance designed to address some of the most frequently asked questions on how the FCA implements provisions under the EBA Guidelines. The frequently asked questions cover topics such as material risk takers, governance, groups, proportionality and variable remuneration.
PS17/10 is available here.