For those that may have missed this in the flurry before Christmas, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have released a consultation paper on the removal of the cap on banker bonuses. This will allow firms to increase the ratio between fixed and variable remuneration if they wish. It is anticipated that the final rules will be published in Q2 2023 and apply to performance years following this.

Organisations with any views on this should ensure they respond to the consultation. The deadline for responses is 31 March 2023. The consultation paper can be viewed here.

You can also see our Point of View on the key considerations for firms in relation to the lifting of the bonus cap.