The FCA’s Remuneration Codes (the Codes) set out the standards that banks, building societies, some investment firms and alternative investment fund managers have to meet when setting pay and bonus awards for their staff.
The FCA has adopted a proportionate approach to implementing the Codes and remuneration disclosure. This approach is set out in the FCA’s general guidance on proportionality:
- IFPRU firms (SYSC19A);
- BIPRU firms (SYSC 19C); and
- AIFMD remuneration guidance (SYSC 19B).
The FCA has now published a new web page which sets out information for firms and groups who think that they may fall into a lower proportionality level and who wish to apply for individual guidance from the FCA to vary their proportionality level.
In order to have a consistent decision-making process the FCA has published three separate application templates:
- Template A – Groups only. Application to move an IFPRU limited licence or limited activity firm engaging in asset management activities, or a BIPRU firm, from the group proportionality level in paragraph 2 to proportionality level 3;
- Template B – Groups only. General application to move a firm from the group level into a lower level (excluding IFPRU limited licence asset management firms, or BIPRU firms); and
- Template C – General level change application. For stand alone firms or firms that are the only firm directly caught by the Codes in the group.
View Application to vary a firm’s proportionality level, 20 October 2014