Home FCA Handbook SYSC SYSC 19D SYSC 19D.1A Application and purpose
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SYSC 19D.1A Application and purpose

16/10/2025R

  1. (1)

     A firm to which this chapter applies must comply with the PRA Remuneration Rules, as applied and modified by the rules in this chapter.

  2. (2)

     Any reference to the PRA Remuneration Rules in this section is to the PRA Remuneration Rules as applied and modified by the rules in this chapter.

  3. (3)

     The PRA Remuneration Rules are modified by the following rules: 

    1. (a)

       SYSC 19D.2A.4R (Gender-neutral policies and practices);

    2. (b)

       SYSC 19D.2A.6R (Record-keeping);

    3. (c)

       SYSC 19D.2A.11R (Performance adjustment); and

    4. (d)

       SYSC 19D.2A.12R (Breaches of the dual-regulated firms Remuneration Code).

  4. [Note: The PRA Remuneration Rules are available on the PRA’s website. In addition, the PRA has issued a Supervisory Statement (SS2/17) on Remuneration which sets out the PRA’s expectations on how firms should comply with the PRA Remuneration Rules.]
16/10/2025G

  1. (1) For firms subject to the dual-regulated firms Remuneration Code, the PRA is responsible for remuneration requirements from a prudential perspective. The FCA is responsible for remuneration requirements from a conduct perspective. 

  2. (2) The aim of the dual-regulated firms Remuneration Code is to ensure that firms have risk-focused remuneration policies, which are consistent with and promote effective risk management, and do not expose them to excessive risk. It expands upon the general organisational requirements in SYSC 4. 

  3. (3) Historically, the FCA and the PRA had 2 parallel sourcebooks containing rules on remuneration. Firms subject to the dual-regulated firms Remuneration Code were required to comply with both sets of rules. The FCA has now simplified its rules for firms subject to the dual-regulated firms Remuneration Code by cross-referring to the PRA Remuneration Rules. All cross-references to the PRA Remuneration Rules are to those rules ‘as amended from time to time’. This means that where the PRA's rules change, so do the FCA's. 

  4. (4) Where the FCA's rules modify the PRA Remuneration Rules, or where the FCA wishes to explain how the dual-regulated firms Remuneration Code is to be applied, those rules and guidance remain in SYSC 19D.

16/10/2025G

  1. (1) The effect of SYSC 19D.1A.1R is that the requirements of the PRA Remuneration Rules apply to a firm subject to the dual-regulated firms Remuneration Code as if they were FCA rules. The FCA will supervise and enforce these rules, as if they were FCA rules. 

  2. (2) Firms subject to the dual-regulated firms Remuneration Code must still apply to both the FCA and the PRA to waive or modify a rule. However, they will now (save in relation to the rules and guidance in SYSC 19D.2A) be able to propose a waiver of or modifications to the same rule, instead of proposing changes to 2 different PRA and FCA versions of the rules.