Threat to bankers’ bonuses
BANKERS will have their bonuses clawed back up to a decade after they were awarded in a crackdown on misconduct.
Bank of England have set up the new rules to discourage irresponsible risk taking from bankers
The Bank of England’s Prudential Regulation Authority and the Financial Conduct Authority said yesterday they have designed new rules for banks, building societies and some investment firms to “discourage irresponsible risk-taking and short-termism”.
This is a crucial step to rebuild public trust in financial services
The changes due in the New Year will mean senior managers might not receive incentive bonuses until seven years after the performance measurement period has ended, non-executive directors would be banned from receiving bonuses, while bonuses could be clawed back for seven years, with an additional three years for senior managers.
FCA chief executive Martin Wheatley said: “This is a crucial step to rebuild public trust in financial services.”