Royds employment partner quoted in the Financial Times - Royds Withy King Solicitors

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5 August 2015 0 Comments
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Royds employment partner quoted in the Financial Times

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Caroline Doran, an employment law partner at Royds, has featured in a Financial Times piece on tough new rules being introduced in the banking sector. The controversial new powers – announced by the Financial Conduct Authority (FCA) and Prudential Regulation …

Caroline Doran, an employment law partner at Royds, has featured in a Financial Times piece on tough new rules being introduced in the banking sector.

The controversial new powers – announced by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) – would allow bonuses to be clawed back for up to a decade for senior managers.

Critics say that the regulators’ plans will make the UK regime the toughest in the world.

Already lawyers have been inundated with questions from bankers, about putting assets beyond their employers’ reach.

The FT noted that many senior bankers already use offshore trusts to protect their assets. Under the new clawback rules, such trusts may still offer protection because banks will have to factor in the cost of recovery when deciding if clawback is “proportionate”.

Caroline said that if a banker’s trusts or offshore accounts are too difficult or expensive to unpick, banks may be less likely to pursue those particular individuals.

“The most senior bankers, with the most sophisticated financial personal arrangements, will have little to fear from clawback threats,” she added.

The FCA and PRA have stated that the clawback powers will apply to all bonuses for performance periods after 1 January 2016.

For more information on our employment law services or advice on bonus payments/clawback please visit or contact Richard Woodman, Caroline Doran, Gemma Ospedale,  Helen Murphie or Kevin James.

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