FCA Consults On Its Implementation Of CRD IV

The FCA has published a Consultation Paper (CP13/12) on its implementation of Capital Requirements Directive ('CRD') IV and in particular, the controversial CRD IV bonus cap provisions.

These specify that the basic ratio between the variable and fixed components of total remuneration that can be paid to a staff member subject to the remuneration provisions should be capped at 1:1. The FCA proposes to copy out this requirement directly into its Remuneration Code.

No implementation of CRD IV's discretionary requirements

Where CRD IV allows Member State regulators their own discretion to impose stricter requirements to either lower the upper limit set for bonuses and/or lower the maximum percentage of total variable remuneration to be discounted and/or place restrictions or prohibit certain types of deferred instruments the FCA proposes not to apply these discretions.