Member

The Government are committed to high standards in financial services regulation and recognise their importance in maintaining confidence and trust in the financial system. The senior managers regime supports high standards by ensuring individual accountability for senior individuals within firms and by promoting high standards of conduct and governance. The Prudential Regulation Authority sets rules on remuneration and applies these to medium-sized and large banks, ensuring they are proportionate. The PRA rules include clear requirements for firms to ensure they have policies on malus and clawback in place to align management incentives with that of the bank. However, as the PRA’s CEO Sam Woods set out in a speech on 17 October, it is important to ensure such regulatory requirements remain proportionate. The Government are committed to ensuring the UK’s regulatory framework facilitates growth while continuing to be robust.