The PRA has announced plans to require City firms to co-operate with new rules on clawing back compensation, even if the staff member leaves the firm, the ex employer would be compelled to provide information the new employer. Such situations arise because of buyouts which is when a new employer buys out a staff member from a lucrative existing contract with his employer. The regulator isn't challenging that but wants essentially the threat of clawback to follow the staff member, if even they move on to a new employer. The plans would require employers to flag any conduct issues with the staff member's new employer where a clawback could presumably then occur. Such an arrangement shall be interesting given the sharing of such sensitive information does not always happen in the City. Under the proposed PRA standards, senior management and senior risk takers would be subject to the new rules. This story was covered earlier in the week at the FT and can be viewed at: http://www.ft.com/cms/s/0/709cab9e-b9e4-11e5-bf7e-8a339b6f2164.html#axzz3xiHPKatV.
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