30/07/2014

BoE Reveals New Bonus Reclaim Rules

New rules have been revealed that would see rogue bankers having to pay back bonuses and face longer jail terms.

The Bank of England (BoE) has revealed plans that would see rule-breaking bankers made to repay bonuses up to seven years on from being awarded them – this could also see bankers whose bonuses were paid in shares, which have been chased and spent, still asked to pay them back.

Currently bonuses are usually deferred for three to five year, meaning that they can be reclaimed if deemed appropriate.

In a report by the BBC, the Bank's deputy governor for prudential regulation, Andre Bailey, said: "Holding individuals to account is a key component of our job as regulators of banks.

"The combination of clearer individual responsibilities and enhanced risk management incentives will encourage individuals in banks to take greater responsibility for their actions."

(MH/CD)


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