1: Overview

1.1 This policy statement (PS) from the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) (jointly, ‘the regulators') provides feedback to responses to the joint consultation paper (CP) PRA CP15/22 and FCA CP22/28 – Remuneration: Ratio between fixed and variable components of total remuneration (‘bonus cap’). For simplicity, these two CPs are referred to below as CP15/22.

1.2 Although the regulators have considered the responses to feedback independently of one another, and in accordance with their statutory objectives, final policy is being published jointly to avoid unnecessary duplication. Responses have been shared between the regulators.

1.3 This PS provides the regulators’ final policy as follows:

• changes to the Remuneration Part and the Disclosure (CRR) Part of the PRA Rulebook (Appendix 1);
• changes to the Senior Management Arrangements, Systems and Controls (SYSC) 19D: Dual-regulated firms Remuneration Code that is part of the FCA’s Handbook (Appendix 2); and
• updates to the PRA’s supervisory statement (SS) 2/17 – Remuneration (Appendix 3).

1.4 This PS is relevant to banks, building societies, and PRA-designated investment firms, including third-country branches that are subject to the Remuneration Part of the PRA Rulebook and to the FCA SYSC 19D: Dual-regulated firms Remuneration Code (collectively referred to as ‘banks’ in this PS). This PS is not relevant to credit unions, insurers, and FCA solo-regulated firms. While...

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