FCA Remuneration Code Principles—comparison checklist
FCA Remuneration Code Principles—comparison checklist

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • FCA Remuneration Code Principles—comparison checklist
  • Background to the remuneration codes
  • Staff covered by the Codes
  • Differences and similarities in the various remuneration code principles
  • Risk management and risk tolerance
  • Supporting business strategy, objectives, values and interests and avoiding conflicts of interests
  • Governance
  • Control functions
  • Remuneration and capital
  • Exceptional government intervention
  • More...

Background to the remuneration codes

The FCA Handbook currently contains five remuneration codes (Codes), with change driven by European Directives that include the Third Capital Requirements Directive (CRD III), the Fourth Capital Requirements Directive (CRD IV), the Alternative Investment Funds Managers Directive (AIFMD) and the UCITS V Directive on Undertakings for Collective Investment in Transferable Securities (UCITS).

In addition, rules on the remuneration and performance management of sales staff are setout in SYSC 19F. These rules implement Article 24(10) of the recast Markets in Financial Instruments Directive 2014/65/EU (MiFID II), which has effect from 3 January 2018.

The FCA has also issued final guidance FG18/2 and policy statement PS18/7 on staff incentives, remuneration and performance management in consumer credit firms.

There have been three codes applicable under CRD III and CRD IV since July 2015:

  1. the IFPRU Remuneration Code (SYSC 19A), which sets out the remuneration standards and policies for solo-regulated IFPRU investment firms, within scope of CRD IV. See Practice Note: IFPRU Remuneration Code for further detail.

  2. the BIPRU Remuneration Code (SYSC 19C), which sets out the standards that BIPRU investment firms within scope of the CRD III have to meet when setting pay and bonuses for their staff. See Practice Note: Remuneration Code for BIPRU firms for further detail.

  3. the Dual-regulated Firms Remuneration Code (SYSC 19D), which sets out the remuneration standards and policies for dual-regulated

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