The FCA recently published a new webpage for firms subject to the MIFIDPRU Remuneration Code, it is timely reminder for investment firms to ensure that they are familiar with all of the requirements of the Code and are ready and able to apply them to performance periods starting on or after 1 January 2022.
The aim behind the new Code is to ensure that the requirements are proportionate to the size and complexity of different firms and the degree of risk they present to customers and markets. This is good news for many smaller firms but work will need to be done to determine the appropriate categorisation of the firm and to review existing remuneration policies and procedures to identify any changes which must be made this year.
The webpage provides a helpful overview of the Code, covering proportionality, performance adjustment, reporting requirements and disclosure and has links to other relevant material, including two new templates:
- Remuneration policy statement (RPS) template. This template can be used by firms to document their remuneration policies and practices.
- Table of material risk takers (MRTs). This table can be used by firms to keep a record of their assessment as to which staff are identified as MRTs.
It is not compulsory to use the templates but they may act as a useful tool to check a firm’s compliance with the Code.
The new webpage can be found here: MIFIDPRU Remuneration Code (SYSC 19G) | FCA
Our Financial Services Regulatory team can assist you with compliance with the Remuneration Code, please contact Kate Troup for more details.