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Bankers' bonuses - the final rules

Employee Incentives | 22/10/2025

Final rules on UK bankers' remuneration: deferral periods for bonuses to be further shortened and other changes. 

The Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority ("FCA") have now published their final rules shortening the deferral periods that apply to risk-takers’ variable remuneration in large banks in the UK as well as making further changes.

However, in a surprise announcement, the changes will take place much quicker than expected. Not only will all remuneration for 2025 and later years be able to benefit from the more generous regime, but all currently deferred remuneration will generally be able to benefit from the relaxations with immediate effect if a relevant bank chooses.

Banks will therefore now quickly have to consider whether to take advantage of this for currently unvested or deferred remuneration. Accelerating receipt of bonuses could lead to some very large releases for some UK employees over the next few months.

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