The Remuneration Code for banks, building societies and designated investment firms is set out in Chapter 19A of the Systems and Control sourcebook (SYSC) which forms part of the FCA and PRA Handbooks.

Firms must now ensure that their remuneration policies and practices are consistent with and promote sound and effective risk management. The Remuneration Code applies to all material risktakers whose status/function or level of remuneration means that their professional activities have a material impact on a firm’s risk profile. The Code contains complicated rules which control the extent to which variable remuneration must be deferred as well as the cash/equity ratio of awards.

In the context of the Code and the new FCA/PRA regime for individual remuneration and conduct, our team of specialist employment lawyers regularly advise both individuals and firms on a wide range of issues including the following:

  • executive remuneration – deferral and malus, clawbacks and buy-outs
  • the Senior Managers Regime
  • the Certification Regime
  • the Conduct Rules (which will replace the Statements of Principle for Approved Persons)

Our recent experience includes:

  • advising a senior banker on the terms of an offer letter and the buy-out of his existing bonus arrangements by his prospective new employer
  • advising the CEO of a fund manager on the termination of his employment and the application of the Code to his ex-gratia severance payments

How Fox & Partners can help…

  • we provide bespoke advice to our clients on a complex area of employment law which is undergoing fundamental and rapid change
  • our advice is tailored to the objectives of our clients and we aim to provide a cogent strategy to clients in negotiating a clear passage through difficult regulatory waters.

Please call us on 020 7618 2400