Prudential Regulation Authority Rulebook

8.1

A ring-fenced body must establish a remuneration committee that comprises only members of its management body who do not perform any executive function in relation to the ring-fenced body.

8.2

A ring-fenced body must ensure that its remuneration committee includes a person performing the Chair of Remuneration Committee function.

8.3

A ring-fenced body must ensure that the person performing the Chair of Remuneration Committee function does not chair any committee whose functions include remuneration for any other member of the ring-fenced body’s group, other than for a ring-fenced affiliate.

8.4

When establishing, implementing and maintaining remuneration policies, practices and procedures for its employees, a ring-fenced body must ensure that these remuneration policies, practices and procedures:

1. (1) are consistent with and promote the sound and effective risk management of the ring-fenced body;
2. (2) do not encourage risk-taking that exceeds the level of tolerated risk of the ring-fenced body;
3. (3) are in line with the business strategy, objectives, values and long-term interests of the ring-fenced body; and
4. (4) do not encourage a ring-fenced body to bear any risk that would undermine its ability to comply with any ring-fencing obligation.

8.5

Nothing in 8.4 restricts a ring-fenced body from enabling the receipt by its employees of remuneration in the form of shares or other instruments of another member of the ring-fenced body’s group, provided that the receipt of such remuneration is in accordance with 8.4.