UK financial regulators are demanding that banks bolster their risk management functions in the wake of the collapse of Archegos Capital earlier this year, and could tie executive bonuses to the success of these plans.

The Bank of England, Financial Conduct Authority and Prudential Regulation Authority published an open letter to banks demanding that they report back by the end of the first quarter, and even suggested that the bonuses of senior executives be tied to these reports to ensure improvements are made.