The PRA has published a policy statement (PS28/21) on the identification of material risk takers (MRTs) for the purposes of its remuneration regime. Following the feedback received on its proposals, the PRA has:
- made a minor change to the Certification Part of the PRA Rulebook; and
- clarified that the threshold referred to in Rule 3.3A(2) of the Remuneration Part should be calculated on an individual entity basis and not at the consolidated level.
The PRA’s final policy is set out in revised versions of supervisory statements published alongside the policy statement: Remuneration (SS2/17) and Strengthening individual accountability in banking (SS28/15).
Changes to the Remuneration Part of the PRA Rulebook take effect on 30 December 2021 and changes to the Certification Part take effect on 1 March 2022.
Following the publication of PS28/21, the FCA has announced its plans to consult on similar changes in 2022 to clarify its approach for firms subject to the Dual-regulated firms Remuneration Code. In any areas of inconsistency before the FCA consultation, the FCA considers a firm operating in compliance with PS28/21 will also be operating in compliance with FCA requirements.