Posted by Richard Woodman, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
Royds employment partner quoted in the Financial Times
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.
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.
It pays to employ the right employment solicitor