This joint Policy Statement with the Prudential Regulation Authority (PRA) sets out feedback and our final policy on changes to the remuneration rules for dual-regulated firms.
The changes are intended to make the regime simpler, more effective and proportionate in meeting its aim of ensuring accountability for risk taking, while supporting our secondary objective to facilitate the international competitiveness of the UK economy and its growth.
It will also be of interest to:
The changes will come into force on 16 October 2025 and apply to a firm’s performance year starting after that date.
Some changes may also be applied by firms (on an optional basis) to the performance year which is ongoing (on 15 October 2025), and/or to remuneration that has been awarded in previous performance years but not yet vested. These elements are detailed in the PS under the section 'Implementation timeline changes'.
These proposals were consulted on in CP24/23 and include changes to dual-regulated firms Remuneration Code (SYSC 19D).
In continuation of the post-Brexit reforms, we, alongside the PRA, want to remove complexities and clarify core aspects of the dual-regulated firms’ remuneration framework. Our aim is to support and maintain the regime’s effectiveness, while supporting the international competitiveness of the UK financial sector and economic growth in the medium to long-term.
These changes remove unnecessary duplication of rules between the regulators, streamline the remuneration regime for firms, and further strengthen the reputation of the UK banking sector.
They are intended to complement changes introduced in 2023. Specifically, the removal of the bonus cap and enhancements to proportionality for small dual-regulated firms.