This policy statement (PS) sets out the PRA’s response to feedback received from the consultation on clawback (CP6/14), which closed on 13 May, together with the final rule on clawback. The rule will come into force on 1 January 2015.
In CP6/14, the PRA consulted on a proposal requiring firms to be able to apply clawback to vested variable remuneration on a group-wide basis. The proposal was in accordance with the PRA’s existing approach to proportionality (see Key Resources below) and would apply to level one and two firms only. CP6/14 also included a draft rule that clarified the PRA’s position and expectations on the application of clawback.
The PRA received a number of responses to CP6/14, which have been taken into account by the PRA in formulating the final rule on clawback. PS7/14 sets out our response to feedback received from CP6/14 and the finalised rule on clawback that will come into force on 1 January 2015.
Clawback - PS7/14