On 17 December the PRA published Policy Statement 28/21 ‘Remuneration: Identification of material risk takers’ (PS28/21).
In PS28/21 the PRA provides feedback to responses to Consultation Paper 18/21 ‘Remuneration: Identification of material risk takers’. It also contains the PRA’s final policy, as follows:
- Amendments to the Remuneration Part of the PRA Rulebook, in relation to the criteria for identifying Material Risk Takers (MRTs) and relevant definitions.
- The revocation of the PRA version of Commission Delegated Regulation (EU) No 604/2014 of 4 March 2014.
- An updated version of Supervisory Statement 2/17 ‘Remuneration’, which reflects the rule changes and the amended process for excluding an employee identified as an MRT solely based on the quantitative criteria.
- Consequential changes to the Certification Part of the PRA Rulebook, and to Supervisory Statement 28/15 ‘Strengthening individual accountability in banking’, which mirror the Remuneration Part changes.
The changes to the Remuneration Part of the PRA Rulebook will take effect on 30 December 2021, and are required to be implemented by firms from the first performance year which starts after this date. The changes to the Certification Part of the PRA Rulebook will take effect on 1 March 2022.