Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022.
The FCA said in a letter to chairs of banks' remuneration committees they should prioritise embedding the new Consumer Duty introduced in July, to ensure customers get fair value and appropriate products and services.
"Senior managers and boards, especially those whose role is most relevant to the duty, are accountable for complying with the duty," the FCA said in the letter made public.
Banks are currently deciding how to divide up the annual bonus pool as a cap limiting the size of bonuses, inherited from the European Union, expires.
The watchdog said banks should ensure that there is a "clear, strong and evidenced link" between behaviours and overall pay, with "timely and transparent" adjustments when appropriate.
Persons:
Toby Melville, Banks, Alasdair Steele, Huw Jones, Jan Harvey
Organizations:
FCA, Financial, Authority, REUTERS, Britain's, Consumer, European Union, CMS, Thomson
Locations:
London, Britain