Remuneration Code

Refreshed January 2024 | CPD time: 1 Hour

The Remuneration Code contains a set of rules and guidance concerning the structure of remuneration packages paid to employees. The aims of the Code are to ensure greater alignment between risk and individual reward, discourage excessive risk-taking and short-termism, encourage more effective risk management, and support positive behaviours and a strong and appropriate conduct culture within firms. This module examines the Remuneration Code, including its background and history, the purpose and different versions of the Code, the Remuneration Code principles, as well as recent and future developments. This module focuses primarily on the underlying principles and how they are implemented in the Dual-Regulated Code (covering firms regulated by both the PRA and FCA). It also references the new MIFIDPRU Code that relates to MiFID investment firms and covers the removal of the bonus cap which took place on 31 October 2023.