Whilst on the subject of remuneration (see previous article) it may be recalled from Regulatory Roundup 58 that a new Remuneration Code was to be introduced into the Handbook: SYSC 19D “Dual-regulated firms Remuneration Code”.
The new rules came into force on 1 July and, as the title implies, is relevant to those firms that are regulated by the PRA and FCA. These are largely building societies and banks but there are a handful of investment firms that are also dual-regulated. The IFPRU Remuneration Code (SYSC 19A) has been amended to reflect the impact of the creation of SYSC 19D, including the definition of ‘Remuneration Code Staff’ (SYSC 19A.3.4(1)).
Although the rules are obviously now in the Handbook, it is worth referring to the joint PRA/FCA Policy Statement “Strengthening the alignment of risk and reward: new remuneration rules” (FCA PS15/16) because tucked away in Annex 4 are the latest versions (1 July 2015) of FCA Proportionality Guidance for IFPRU firms (SYSC 19A) and BIPRU firms (SYSC 19C) – which includes Pillar 3 Disclosure – as well as new Guidance for dual-regulated firms.