CP26/27: Remuneration: Solo-regulated firms’ rules reform

Read CP26/27 (PDF)[1]

Why we are consulting

We have a remuneration framework that applies across solo-regulated firms:

• Alternative investment fund managers (AIFM) (SYSC 19B)
• UCITS management companies (UCITS) (SYSC 19E)
• MIFIDPRU investment firms (SYSC 19G)

Feedback from firms suggests the rules are difficult to apply and may impose unnecessary burden, particularly for firms that do not pose systemic risk.

To remove duplication, improve clarity and reduce complexity for firms, our proposals include replacing the 3 existing remuneration codes with a single consolidated code for in-scope solo-regulated firms.

We propose to move from detailed, prescriptive rules towards a more outcomes-focused approach based on firm governance and accountability.

Who this is for

This consultation applies to:

• Investment firms 
• Alternative investment fund managers
• UCITS (Undertakings for Collective Investment in Transferable Securities) management companies
• Firms in the same group as at least 1 of the types of firms in the 3 categories above 

It may also be of interest to:

• Credit institutions (banks and building societies)
• Trade bodies and firms’ professional advisers
• Consumers and consumer organisations to understand how firms remunerate their staff and align risk with reward

Next steps

Online response form[2]

Send us your feedback by 16 September 2026 using our online response form[2] or by emailing [email protected].

Dependant on the feedback we receive, we anticipate publishing a policy statement in Q1 of 2027. We propose that the new remuneration rules and guidance come into force the day after we publish the policy statement, with AIFMs transitioning in 2 stages in line with broader AIFM reforms (CP26/28[3]).

Background

Remuneration can affect individual behaviour, firm culture and outcomes for clients, funds and investors. Poorly designed remuneration can reward short-term performance without enough regard to later risks.

We want to promote remuneration practices that encourage good conduct, healthy culture, and align with the interests of clients, funds and investors.

The proposals in the consultation sit alongside our work on the future regulatory framework of AIFMs. We have published a separate consultation paper on AIFM reform, CP26/28[4].