PRA to hold veto power on with-profits bonuses

clock

The Prudential Regulation Authority (PRA) will wield a veto power over proposed terminal or annual bonuses for with-profits policies, under the new regime.

From next year, both the Financial Conduct Authority (FCA) and the PRA will be involved in the regulation of with-profits firms. Speaking at the PRA Insurance Conference yesterday, Julian Adams, director of insurance at the Financial Services Authority (FSA), explained some of the PRA's powers. He said: "Where the solvency of the fund may be compromised to an extent that we believe challenges our prudential objectives, then the PRA will intervene in a decisive manner and has the ability to veto a proposed course of action on annual or terminal bonuses. "This might also apply to cas...

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 Investment

Muted response as Labour names Grimsby Town FC co-owner next investment minister

Muted response as Labour names Grimsby Town FC co-owner next investment minister

After the sudden exit of Poppy Gustafsson last week

Eve Maddock-Jones
clock 08 September 2025 • 2 min read
Hargreaves Lansdown and Schroders to launch double LTAF offering

Hargreaves Lansdown and Schroders to launch double LTAF offering

From next week

Eve Maddock-Jones
clock 08 September 2025 • 2 min read
Darius McDermott: Complacency at the peak

Darius McDermott: Complacency at the peak

'Markets to hit new highs, while credit spreads are at multi-decade lows'

Darius McDermott
clock 08 September 2025 • 5 min read