Schedule 11: Central counterparties Part 4 – Removal of directors and senior managers Temporary restriction on remuneration
Paragraph 13 describes the powers the Bank will have to direct a CCP to restrict or prohibit discretionary payments to specific employees or shareholders of a CCP for a specified time. These include equity remuneration, dividend payments, share buy-backs, bonuses and severance payments, where these payments are not obligations imposed under a contract. The Bank can only exercise this power when it has not yet exercised any stabilisation powers.
	Sub-paragraphs (2) to (4) outline the conditions that must be met for this power to be exercised.
	Sub-paragraphs (5) to (8) require that the Bank must publish a statement of policy, and that no directions may be under this section before the statement of policy has been published.
	Sub-paragraph (9) outlines that the specified time for use of this power must not exceed 5 years, and sub-paragraph (10) clarifies that a direction must be given in writing and can be varied or revoked.