Remuneration Code for BIPRU firms
Remuneration Code for BIPRU firms

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

  • Remuneration Code for BIPRU firms
  • Background
  • The revised Remuneration Code (the Code)
  • Who does the BIPRU Code apply to?
  • The BIPRU Code and risk management
  • The Remuneration Principles
  • Key elements of the code
  • Proportionality
  • Records

This Practice Note explains the Remuneration Code for BIPRU firms (the BIPRU Code) under Chapter 19C of the Senior Management Arrangements, Systems and Controls Sourcebook (Financial Conduct Authority (FCA) Handbook SYSC 19C), which contains the rules for BIPRU firms on remuneration.

The BIPRU Code sets out the standards that some investment firms (BIPRU firms) have to meet when setting pay and bonus awards for their staff. It aims to ensure that firms' remuneration practices are consistent with effective risk management.

The BIPRU Code expands upon the general organisational requirements in FCA Handbook SYSC 4. For guidance on the general organisational requirements for authorised firms see Practice Note: Senior management arrangements, systems and controls.


The Financial Services Authority (FSA) originally published a Remuneration Code in February 2009 in response to the global economic financial crisis—the aim of the original Remuneration Code was to ensure that firms had remuneration policies that:

  1. were consistent with sound risk management

  2. did not encourage inappropriate risk taking, and

  3. did not expose firms to excessive risk

The financial crisis exposed the fact that remuneration frequently gave incentives to staff to follow risky policies which undermined the impact of systems designed to control risk.

The revised Remuneration Code (the Code)

The original Remuneration Code has been revised to meet the remuneration provisions of the Capital Requirements Directive