FCA has updated its materials on SYSC 19D to include its “Dear Remuneration Chair” letter for 2022, which sets out its expectations as the Remuneration Committees determine the year’s remuneration outcomes. It focuses on
- culture and accountability, including embedding ESG and D&I considerations into firms’ functions It says it will be consulting later this year on promoting D&I in the financial services sector, which will include proposals to make changes to Remco responsibilities;
- the Consumer Duty, stressing that the Committees should align their approach to supporting consumers with the firm’s business strategy and ensuring their remuneration policies support the Consumer Duty expectations;
- the rising cost of living and supporting colleagues on lower pay; and
- operational resilience and the need to consider whether remuneration adjustments are appropriate following any major incident.
Firms with accounting reference dates of 31 December will need to submit their required documentation by 31 August.