#AceFinanceNews UK “bad bankers” may be forced to return the last 6 years of bonuses, as the Bank of England is seeking to make top management more responsible for the lenders’ performance and avoid a repetition of the mis-selling and rate manipulation scandals.
The ruling would cover all the 1,700 firms authorised by the Prudential Regulation Authority (PRA), such as banks, building societies, credit unions, insurers and major investment houses.
It could come into force on January 1, 2015 and the claw-back could be applied to awards made before that date but which are paid after, says the Bank of England.
Reasonable evidence of “misbehaviour”, huge losses or a risk-management failure are among the reasons that can leave a banker without an annual bonus.
The new legislation if applied will become the most severe claw-back provisions in the world, according to Tom Gosling, a partner at PWC.