The UK's Financial Conduct Authority (FCA) is considering introducing pay and clawback measures for all regulated companies including the 2100 FCA-supervised fund groups. The UK’s financial services watchdog response follows the Bank of England’s similar proposal last month to force bankers to repay bonuses up to six years after they have received them if misconduct, risk management failures or heavy financial losses are demonstrated.
In its annual review the FCA outlines its plans to reduce the risk of misconduct in the asset management industry, including the publication of a consultation planned for this summer on whether to introduce mandatory bonus clawback provisions for all the firms the FCA regulates. This significantly increases the pressure on fund companies to demonstrate good conduct since FCA figures reveal that clawback measures would affect a high number of individuals in the industry.
UK’s concerns reflect the changes across Europe since the European Commission introduced similar measures under the Alternative Investment Fund Managers Directive last July.
Please read here the Financial Times article.
Cartoon by Howard McWilliam/ The Sunday Telegraph