pc
nid 93982
Jul 14, 2026
csoo@vixio.com
United Kingdom
Financial Conduct Authority
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1867 charsFinancial Conduct Authority Consults on Simplified Remuneration Rules for Solo-Regulated Firms
On July 14, 2026, the Financial Conduct Authority (FCA) launched a consultation on proposals to reform remuneration rules for solo-regulated firms. The FCA is seeking views on a simpler, more proportionate remuneration regime that consolidates three existing remuneration codes into a single code for in-scope firms.
Currently, the FCA applies separate remuneration frameworks to alternative investment fund managers (AIFMs), UCITS management companies (undertakings for collective investment in transferable securities), and MIFIDPRU investment firms. Feedback from firms indicates these rules are difficult to apply and impose unnecessary burden, particularly for firms that do not pose systemic risk. The FCA proposes replacing the three existing codes—SYSC 19B, SYSC 19E, and SYSC 19G—with a consolidated framework. The proposals shift from detailed, prescriptive rules towards an outcomes-focused approach based on firm governance and accountability. This reform aims to remove duplication, improve clarity, and reduce complexity while promoting remuneration practices that encourage good conduct, healthy culture, and align with the interests of clients, funds, and investors.
The consultation applies to investment firms, AIFMs, UCITS management companies, and firms in the same group as at least one of these entity types. The FCA is also inviting responses from credit institutions, trade bodies, professional advisers, and consumer organisations.
The consultation closes on September 16, 2026. Responses can be submitted via the FCA's online response form or by emailing [email protected]. The FCA anticipates publishing a policy statement in Q1 of 2027, with the new remuneration rules and guidance coming into force the day after publication. AIFMs will transition in two stages in line with broader AIFM reforms outlined in consultation paper CP26/28.
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2044 charsUK's Financial Conduct Authority Consults on Simplified Remuneration Rules for Solo-Regulated Firms
On July 14, 2026, the Financial Conduct Authority (FCA) launched a consultation on proposals to reform remuneration rules for solo-regulated firms, which include Alternative Investment Fund Managers (AIFM), Undertakings for Collective Investment in Transferable Securities management companies (UCITS) and MIFIDPRU investment firms.
CP26/27 contains the following proposals:
Replace the three existing remuneration codes (the AIFM Remuneration Code (SYSC 19B), the UCITS Remuneration Code (SYSC 19E) and the MIFIDPRU Remuneration Code (SYSC 19G)) with a single, consolidated new code for in-scope solo-regulated firms (SYSC 19AA).
Move away from detailed, prescriptive rules towards a more outcomes-focused approach based on firm governance and accountability.
Revoke the MIF008 remuneration reporting template and the corresponding reporting requirement for MIFIDPRU firms.
Refocus the scope of the remuneration regime so that it applies only to firms that pose greater potential risks to consumers and markets.
Introduce greater flexibility in deferral, malus and clawback, with responsibility resting more heavily on firms’ governance structures and the management body’s judgement.
Simplify and update definitions and terminology to reflect the new code and the removal of the existing ones. Make consequential amendments across the Handbook, including to the glossary, SYSC and other relevant sourcebooks.
Set out transitional and sequencing arrangements, including how the new code would apply alongside forthcoming changes to the AIFM framework, so firms are clear about how and when requirements would take effect.
Revoke existing non-Handbook guidance where it’s no longer relevant and incorporate elements into the new code.
The consultation closes on September 16, 2026. Responses can be submitted via the FCA's online response form or by email to cp26-27@fca.org.uk . The FCA anticipates publishing a policy statement in Q1 of 2027, with the new remuneration rules and guidance coming into force the day after publication.