30 Jul 2014

AFME comment on PRA policy statement on clawback

Commenting on the Prudential Regulation Authority’s (PRA) policy statement, in response to feedback received from the consultation on clawback, Simon Lewis, Chief Executive of the Association for Financial Markets in Europe (AFME), said:

“AFME and its members support remuneration policies, such as appropriately calibrated clawback rules, that foster sound risk management and avoid incentives for excessive risk taking and short‐termism. In respect of the competitiveness of the UK financial services sector, while we note that some of the industry’s comments have been addressed in the PRA’s response, we remain concerned about the lack of coordination of clawback arrangements at the international level.”