Dual-regulated firms Remuneration Code (SYSC 19D)

The dual-regulated firms Remuneration Code (SYSC 19D) applies to dual-regulated firms, comprising banks, building societies and PRA-designated investment firms, including UK branches of non-UK headquartered firms.

On 17 December 2020, we published a policy statement with our final rules on amending SYSC 19D and revised non-Handbook guidance to take account of CRD V. The policy statement contains our response to the consultation paper on our proposals to amend SYSC 19D and relevant non-Handbook guidance. Our final rules and guidance remain largely consistent with the PRA’s in a way that supports our objectives.  

Frequently asked questions guidance

FG20/5: Dual-regulated firms Remuneration Code (SYSC 19D): FAQs on remuneration (PDF)

We have published guidance to address some of the frequently asked questions we receive from firms. This guidance gives firms some practical guidance to understand how the EBA Guidelines on sound remuneration policies are relevant to them, and gives additional clarification on our remuneration code. 

Firms should read this guidance in conjunction with our remuneration code, proportionality guidance, and the EBA Guidelines to help understand how the requirements apply to them.

In Brexit: our approach to EU non-legislative materials, we explain how we expect firms to continue to apply guidelines to the extent that they remain relevant.


The Dual-regulated firms Remuneration Code (SYSC 19D) (the Code) sets out the standards and policies that dual-regulated firms must meet when setting pay and bonuses for their staff.

The extent to which the Code applies depends on whether firms and individuals meet the relevant proportionality thresholds. Our General guidance on proportionality: the Dual-regulated firms Remuneration Code (SYSC 19D) provides more information on this and sets out that a firm should comply with the Code in a way that is appropriate to its size, internal organisation and the nature, the scope and the complexity of its activities.

Ex-post risk adjustment

Firms must make sure that variable remuneration is only paid or allowed to vest where sustainable and justified by performance, subject to clawback. 

Ex-post risk adjustment refers to the reduction, cancellation or recovery of variable remuneration to take account of crystallised risks or adverse performance outcomes, including those relating to misconduct.

This provides a balancing mechanism for firms to reduce, cancel or recover awards to the extent that these awards are no longer justified by performance, once risk and performance outcomes become known. 

We have published General guidance on the application of ex-post risk adjustment to variable remuneration to share the latest good practice and to clarify our expectations on how relevant firms meet the Remuneration Code requirements in this area.

Supervisory approach

For dual-regulated firms, we are responsible for setting and overseeing implementation of remuneration requirements from a conduct perspective. These are set out in our Dual-regulated firms Remuneration Code (SYSC 19D). 

Firms’ remuneration and recognition practices are important drivers of culture. We pay close attention to them as we assess the way firms focus on embedding and maintaining healthy cultures. 

Throughout the year, our supervisory teams assess and review how firms reward staff, and the behaviour this drives, through our approach to supervising firms. 

We coordinate our supervisory activities with the PRA. Although each regulator has its own areas of focus, both regulators must be happy that the approach of each Level 1 firm to setting its awards is consistent with our requirements. 

In August 2021, we wrote to the Remuneration Committee Chairs of Level 1 firms to set out our approach on remuneration and highlight some other areas including on accountability, non-financial measures, diversity and inclusion and our international work.

The linked letters under 'More information and guidance' set out observations and findings from previous annual remuneration rounds.

Self-assessment templates and tables

Dual-regulated firms can use the Remuneration Policy Statement (RPS) templates and tables available on the Bank of England’s website to record remuneration policies, practices and procedures and assess compliance with the Code.

Firms subject to annual review by us, should submit the completed RPS and tables to their usual supervisory contact, noting the requested submission schedule set out in the RPS.


The EBA revised its Guidelines on the data collection exercise on high earners and remuneration benchmarking in 2014. Firms must provide remuneration data annually on high earners and benchmarking.

In Brexit: our approach to EU non-legislative materials, we explain how we expect firms to continue to apply guidelines to the extent that they remain relevant.

Please also see the UK version of Article 450 of the Capital Requirements Regulation (CRR) for the disclosure requirements regarding your firm’s remuneration policy and practices.

More information and guidance