Question to the HM Treasury:

To ask Her Majesty’s Government whether, in considering regulators’ recommendations for a seven-year bonus deferral for senior managers in investment banks, they are considering extending such a policy to cover asset managers.

The Prudential Regulation Authority and Financial Conduct Authority’s proposals for seven-year deferral periods have been developed in response to the recommendations of the Parliamentary Committee on Banking Standards. These recommendations were specifically developed in the context of the banking industry and the Government took the decision not to extend them to other sectors.

However, the Financial Conduct Authority already enforces remuneration requirements on asset managers, including deferral, the period of which is designed to align incentives with the activities that the individual is undertaking. Changes to these requirements would be a matter for the independent regulator to decide.