Bonus Clawbacks: Prudential Regulation Authority Policy Statement and Final Rules
The Prudential Regulation Authority (“PRA”) has issued a policy statement and final rules on the requirement for PRA authorised firms to claw back bonuses which have already vested.
The policy statement indicates that:
- The rules will not apply retrospectively. Instead, clawback obligations will apply in respect of bonuses awarded on or after 1 January 2015;
The policy statement contains the PRA’s response to its consultation on clawback proposals issued in March 2014. The changes will be implemented by way of a change to the Remuneration Code.
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