Bankers seeking to shield themselves from new rules allowing a decade’s worth of bonuses to be clawed back have been inundating lawyers with questions about putting assets beyond their employers’ reach.
The Financial Times reports that earlier last week, the UK’s Prudential Regulation Authority and Financial Conduct Authority said they were planning to let banks to take back bonuses from senior managers for up to 10 years in the event of misconduct or risk management failures — and for up to seven years if staff were 'material risk takers'.
Some rules remain to be worked out, such as how to clawback bonuses from bankers who change jobs and have their bonuses 'bought out' by new employers. Nevertheless, the regulators insist the clawback powers will apply to all bonuses for performance periods beginning on or after January 1.
Already, though, according to the newspaper, bankers have been visiting lawyers to find ways protect their assets from any potential future clawback.
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