FCA maintains focus on remuneration policies following bankers' bonus cap removal

Letter to remuneration committee chairs

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...