Featured Product

    EBA Consults on Standards to Identify Staff for Remuneration Purposes

    December 19, 2019

    EBA is consulting on the draft regulatory technical standards on the criteria to identify all categories of staff whose professional activities have a material impact on the risk profile of institutions (referred to as "risk takers"). The suggested identification process is based on a combination of qualitative and quantitative criteria. The consultation runs until February 19, 2020. After the finalization of the draft regulatory technical standards, these standards are expected to be submitted to EC in June 2020.

    These draft standards have been revised in light of Article 94 (2) of the Capital Requirements Directive (CRD), as amended by the EU Directive 2019/878 (CRD5) that mandates EBA to develop draft regulatory technical standards to set out the criteria to define managerial responsibility and control functions; material business unit and significant impact on the risk profile of the relevant business unit; other categories of staff not expressly referred to in Article 92(3) CRD. The risk takers will be identified based on the criteria laid down in the revised Capital Requirements Directive (CRD) and those specified within the draft regulatory technical standards. The qualitative criteria that were set out in 2014 in the regulatory technical standards on the identified staff have been largely retained in the updated draft regulatory technical standards. The revised qualitative criteria identify staff with managerial responsibilities and with decision-making powers that have a material impact on the institutions risk profile.

    In terms of quantitative criteria, the revised CRD sets out a threshold of total remuneration of EUR 500,000 combined with the average of the remuneration of members of the management body and senior management. The draft regulatory technical standards retain the additional quantitative criteria that identify the staff high levels of remuneration above EUR 750,000 and the 0.3% of staff with the highest remuneration, based on the rebuttable presumption that the professional activities of those members of the staff would have a material impact on the risk profile of institutions.

    Members of staff are identified as having a material impact on the risk profile of an institution as soon as they meet at least one of the criteria, be it the criteria foreseen under the CRD, the qualitative or quantitative criteria in the draft regulatory technical standards, or, where necessary because of the specificities of their business model, the additional internal criteria, to ensure that all risk takers are identified.

     

    Related Links

    Comment Due Date: February 19, 2020

    Keywords: Europe, EU, Banking, CRD5, Operational Risk, Remuneration, Regulatory Technical Standards, EBA

    Related Articles
    News

    APRA Plans to Assess Climate Risks and Develop Prudential Guidance

    APRA published a letter that outlines its plans to undertake a climate change vulnerability assessment and develop a prudential practice guide focused on climate-related financial risks.

    February 24, 2020 WebPage Regulatory News
    News

    APRA to Transition to Annual Stress Testing of Large Banks in 2020

    APRA published key findings of the stress testing assessment conducted on authorized deposit-taking institutions.

    February 21, 2020 WebPage Regulatory News
    News

    IAIS Statement on Monitoring Period of Insurance Capital Standard

    IAIS published a statement from its Secretary General Jonathan Dixon on the Insurance Capital Standard (ICS) monitoring period.

    February 21, 2020 WebPage Regulatory News
    News

    EC Consults on Review of Non-Financial Reporting Directive

    EC is launched a consultation on the review of the Non-Financial Reporting Directive or NFRD (Directive 2014/95/EU, as part of its strategy to strengthen sustainable investment in Europe.

    February 20, 2020 WebPage Regulatory News
    News

    EIOPA Consults on Standards for Supervisory Reporting Under PEPP Rule

    EIOPA is consulting on the implementing technical standards for supervisory reporting and cooperation, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation (Regulation 2019/1238).

    February 20, 2020 WebPage Regulatory News
    News

    ECB Report on Transfer of Liquidity from EONIA Products to €STR

    ECB published a report on the transfer of liquidity from the cash and derivatives products of the Euro Overnight Index Average (EONIA) to the Euro Short-Term Rate (€STR).

    February 19, 2020 WebPage Regulatory News
    News

    ESRB Publishes Report on Systemic Cyberattacks

    ESRB published a report that explores systemic implications of cyber incidents, such as cyberattacks.

    February 19, 2020 WebPage Regulatory News
    News

    FSB Chair Sets Out Key Deliverables for G20 Presidency of Saudi Arabia

    FSB published a letter from the Chair Randal K. Quarles to the G20 finance ministers and Central Bank governors ahead of the meetings in Riyadh on February 22-23.

    February 19, 2020 WebPage Regulatory News
    News

    CFTC Proposes Rules on Derivative Position Limits and Swap Execution

    CFTC approved a proposed rule on position limits for derivatives and a proposed rule amending requirements for certain Swap Execution Facilities and real-time reporting.

    February 19, 2020 WebPage Regulatory News
    News

    BIS Appoints Heads of Innovation Hubs in Singapore and Switzerland

    BIS announced key personnel appointments to the Innovation Hubs in Singapore and Switzerland.

    February 19, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4717