FSA’s Sants Says PRA to Monitor Bank Bonuses, Dividends, FT Says
U.K. Financial Services Authority Chief Executive Officer Hector Sants said British banks’ future bonus and dividend payments will depend on their satisfying regulators that the payments won’t weaken capital reserves or erode sound risk management, the Financial Times reported, citing an interview with Sants, who is to become head of the planned Prudential Regulatory Authority.
The assessments will be “part of the ongoing supervisory process,” and “part of a dialogue, not a pass, fail process,” Sants said, according to the FT.
Banks will also have to publish detailed information about their assets that they so far only share with regulators, the FT said, citing Sants. “We want to improve the ability of market discipline to incentivize management to act responsibly,” Sants said, according to the FT.
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