The Financial Conduct Authority (FCA) has updated its Handbook to incorporate the latest provisions provided for in the joint Policy Statement (FCA PS23/17 – PRA PS16/23) (EventID 24252) of the FCA and the Prudential Regulation Authority (PRA) as regards the remuneration (policy) requirements of dually regulated CRR firms, including investment firms, banks, and building societies. Specifically, the update includes
1. SYSC TP 12 Updates to the dual-regulated firms Remuneration Code transitional provision to stipulate that the new requirements do not apply to remuneration paid for a performance year starting prior to December 8, 2023, the effective date of the beforementioned Policy Statement and
2. SYSC 19D Annex 1 Detailed provisions on voiding and recovery (SYSC 19D.3.66R and SYSC 19D.3.67R) to stipulate that any provision in a remuneration agreement that goes against the specified remuneration rules of the FCA becomes void, except for those contracts concluded prior to the coming into force of the new requirements. It also sets out that firms must take reasonable steps to recover any payments to staff members that violate the FCA rules (except for those excluded from the new rules). Finally, any violation of the FCA remuneration principles must be notified to the FCA and „should include information on the steps which a firm or other person has taken or intends to take to recover payments“.