Regulator may limit bankers' pay in new approach

clock

The incoming Prudential Regulation Authority (PRA) may impose restrictions on what staff at banks and investment firms can earn if the levels of remuneration pose a threat to the business's health.

A document outlining the PRA's approach suggested regulators will impose "direct restrictions on payments", or require firms to improve their forecasting, systems or governance. The PRA, which alongside the Financial Conduct Authority is set to replace the Financial Services Authority next year, will be responsible for the prudential regulation of deposit-takers, insurers and major investment firms. It will be part of the Bank of England. The approach document reveals the wider plans regulators have for the industry from April next year. The PRA will have a statutory objective to p...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

PIMFA publishes non-financial misconduct guidance

PIMFA publishes non-financial misconduct guidance

In partnership with CII, CISI and Clyde & Co to help firms navigate FCA’s updated rules

Sophia Panayi
clock 23 June 2026 • 2 min read
FCA set to raise market abuse penalties and bring crypto into scope

FCA set to raise market abuse penalties and bring crypto into scope

Minimum fine raised

clock 16 June 2026 • 2 min read
Director jailed for near £9m investment fraud

Director jailed for near £9m investment fraud

Declan Nowell sentenced for ‘Ponzi-style’ investment scam

Sophia Panayi
clock 01 June 2026 • 2 min read