Bankers seek ways round bonus clawbacks: Caroline Doran comments in the Financial Times
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 Doran said that if complex trusts or offshore accounts are too tricky or too expensive to unpick, banks may be less likely to pursue those particular bankers. Caroline further commented that "The only people who will win out of this are the lawyers and advisers used to plan bankers’ estates. The most senior bankers, with the most sophisticated financial personal arrangements, will have little to fear from clawback threats."
The FCA and PRA have stated that the clawback powers will apply to all bonuses for performance periods after 1 January 2016.
If you have any questions regarding bonus payments or clawback then contact Caroline Doran, Partner in the Employment Department on 0207 842 1495.