In this Policy Statement we respond to feedback arising from CP17/20 (PDF) and publish final rules for staff incentives, remuneration and performance management in consumer credit firms. These come into force on 1 October 2018.
In July 2017, we consulted on proposed rules and guidance within CP17/20 (PDF). This Policy Statement responds to the feedback received and finalises the rules and guidance.
Responses were broadly supportive of both the rules and guidance, so the legal instrument has been implemented with no substantial changes.
As part of CP17/20 we gathered feedback on non-Handbook guidance to aid compliance with the new rule. The finalised guidance has been published under FG18/2.
This guidance is relevant to firms that are engaged in credit-related regulated activity and are not subject to any of the existing remuneration provisions (SYSC 19A – SYSC 19F). It may also be of interest to consumers and consumer organisations concerned with consumer credit activity.
The rules (set out in Appendix 1 of PS18/7) will come into force on 1 October 2018. The rules will require firms to identify and manage risks arising from remuneration and performance management practices.