On 25 May 2021, the PRA issued a statement providing an update on its approach to updating the applicable requirements on the identification of material risk takers (MRTs), and its position concerning applications for the exclusion of MRTs in the current performance year. The statement should be read in conjunction with chapter 3 of the Remuneration Part of the PRA Rulebook, and Supervisory Statement 2/17 Remuneration.

The PRA explains that as set out in paragraphs 3.4 and 3.5 of Policy Statement 26/20: Capital Requirements Directive V (PS26/20), there is a discrepancy between MRT regulatory technical standards (RTS) 604/2014 which continues to apply in UK law and the revised draft MRT RTS that were published by the European Banking Authority in June 2020 and which is currently used as the basis for the application of the Remuneration Part of the PRA Rulebook. The PRA intends to consult on updating the position later this year. The statement now published sets out the PRA’s view of the current position during the intervening period.