FCA letter to chairs of remuneration committees
Regulatory Updates | 10/08/21
The FCA published a letter addressed to Chairs of Remuneration Committees (Chairs).
The letter sets out the FCA’s approach to remuneration in 2021 and highlights areas for Chairs to consider. The letter reminds Chairs that the Senior Managers and Certification Regime (SM&CR) is a key tool to ensure high standards of conduct and culture within firms and can provide a clear and evidenced link between behaviours and remuneration outcomes.
The FCA also sets out its remuneration approach for 2021/22 and reminds firms with a fiscal year end of 31 December 2021 that they should submit their Remuneration Policy Statement (RPS) and relevant tables by 30 September 2021, along with an explanation of how the relevant Chairs have assured themselves that their firm’s overall remuneration policies support the firm’s purpose, business strategy and values and incentivise the right behaviours.
The FCA also requires Chairs to explain how their firm’s approach to paying variable remuneration will be considered in the continuing context of the pandemic.