On 17 October 2018, the PRA published a Dear Chair of the Remuneration Committee letter.
In advance of the annual review of firms’ remuneration policies and practices, the PRA is updating the way in which it supervises compliance within the requirements of the Remuneration Part of the PRA Rulebook. The update affects remuneration proportionality Level One (total assets exceeding £50 billion) firms only.
With effect from the 2018/19 remuneration review, the PRA will no longer provide a ‘non-objection’ statement to the proposed communication or distribution of variable remuneration awards by Level One firms.
PRA supervisors will continue to engage with Level One firms throughout the year as part of their review into firms’ remuneration policies, practices and processes. Where relevant, they will provide feedback to Level One firms following the remuneration round each year to highlight any areas of key engagement and to draw attention to issues which they feel should be addressed by the firm. The PRA continues to expect Level One firms to submit a remuneration policy statement and quantitative data tables three months ahead of the firm’s preferred final feedback date, with an update of the figures required at least two weeks before the final feedback date.