Remuneration Code for Dual Regulated Firms
Remuneration Code for Dual Regulated Firms

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

  • Remuneration Code for Dual Regulated Firms
  • Purpose and context of the Remuneration Code
  • Meaning of Remuneration
  • How does the Remuneration Code apply?
  • Which individuals does the Code apply to?
  • Proportionality
  • Gender neutral policies and practices
  • The Remuneration Principles
  • General principles
  • Remuneration Principle 4—Governance
  • More...

Remuneration Code for Dual Regulated Firms

Purpose and context of the Remuneration Code

The aim of the Remuneration 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 SYSC 4.

The Remuneration Code implements the main provisions of the Capital Requirements Directive IV (Retained Directive 2013/36/EU) (UK CRD IV) which relate to remuneration. In applying the rules in Remuneration Code, firms should comply with the European Banking Authority (EBA)’s Guidelines on sound remuneration policies under Articles 74(3) and 75(2) of Directive 2013/36/EU and disclosures under Article 450 of Regulation (EU) No 575/2013.

There are five remuneration codes in addition to the Remuneration Code:

  1. the IFPRU Remuneration Code, which applies to IFPRU firms (ie investment firms within the scope of UK CRD IV, but which are not Dual-Regulated Firms. For more information see Practice Note: IFPRU Remuneration Code.

  2. the AIFM Remuneration Code, which implements the remuneration requirements of the Alternative Investment Fund Managers Directive (Retained Directive 2011/61/EU) and applies to full-scope UK AIFMs. For more information see Practice Note: AIFMD—Remuneration

  3. the BIPRU Remuneration Code, which applies to BIPRU firms. For more information see Practice Note: Remuneration Code for BIPRU firms

  4. the UCITS Remuneration Code, which applies to UK UCITS management companies. For more information,

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