IFPRU Remuneration Code

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

  • IFPRU Remuneration Code
  • The other FCA Handbook remuneration codes
  • FCA guidance, policy statements and FAQs
  • CRD IV and EBA Guidelines
  • IFPRU investment firms
  • Meaning of remuneration
  • Which individuals does the Code apply to?
  • The Remuneration Principles
  • Risk management and risk tolerance (Principle 1)
  • Governance (Principle 4)
  • More...

IFPRU Remuneration Code

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

This Practice Note explains the high-level requirements of the IFPRU Remuneration Code (the Code) set out in FCA Handbook SYSC 19A. The Code sets out the standards that IFPRU investment firms have to meet when setting pay and bonus awards for their staff. This Practice Note also looks at the relationship between the Code and the other Remuneration Codes under Chapter 19B, 19C,19D and 19E of FCA Handbook SYSC and the CRR Remuneration Code contained in the Remuneration Part of the Prudential Regulation Authority (PRA) Rulebook.

The aim of the Code is to ensure that firms have risk-focused remuneration policies, which are consistent with and promote effective risk management and do not expose them to excessive risk. It expands upon the general organisational requirements in FCA Handbook SYSC 4. For information on SYSC 4, see Practice Note: Senior management arrangements, systems and controls .

The other FCA Handbook remuneration codes

Alongside the

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