Bankers will be able to collect their bonuses much sooner under a relaxation of remuneration rules unveiled by the UK’s prudential regulator.

The new rules will allow part-payment of bonuses for the most senior bankers from year one, rather than year three under previous rules.

The amount of time that senior bankers must now wait before receiving their full bonus, known as a deferral period – will be cut from eight to four years.

The proposals bring the UK more closely in line with many other major jurisdictions, according to the Prudential Regulatory Authority (PRA).

The new rules will come into force as soon as tomorrow, in time for 2025 pay awards and any other awards made but not yet fully paid.

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