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...
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