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

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    News

    OSFI to Communicate Next Steps on Climate Risk Policy in Early 2022

    In a letter to the federally regulated financial institutions and pension plans, the Office of the Superintendent of Financial Institutions (OSFI) published a summary of the feedback received to the January 2021 discussion paper on ways to address climate risks.

    October 12, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7568