Bonus cap: PRA and FCA announce details of UK implementation

The Prudential Regulation Authority and the Financial Conduct Authority have each announced their proposed approach to the UK implementation of the cap on variable remuneration, being introduced by the amended capital requirements directive (CRD IV).  The consultation documents give much more certainty as to which banks, building societies and investment firms will (and will not) be subject to the bonus cap.  As expected, banks and building societies will generally have to apply the cap across their entire group.  FCA prudentially regulated investment firms will, however, generally be permitted to disapply the bonus cap.  To read our briefing, click here.