As will be known, SYSC 19A concerns the ‘CRD 4 Remuneration Code’ which applies to the category of staff set out in SYSC19A.3.4 e.g. staff engaged in control functions – not to be confused with the approved persons control functions regime in SUP 10A – or those whose total remuneration that takes them into the same remuneration bracket as senior management. SYSC19A.3.6 sets out the FCA’s views on staff that would fall within the definition of ‘Remuneration Code staff’.
Regulatory Roundup 53 included an article on Regulatory Technical Standards (RTS) and the identification of those staff whose professional activities have a material impact on a firm’s risk profile for the purposes of the remuneration obligations under CRD4. The article contained a link to the RTS adopted by the European Commission.
On 6 June the EU Official Journal published ‘Commission Delegated Regulation 604/2014’ setting out the criteria for identifying the staff subject to CRD 4 remuneration requirements. Note that the latter will apply to staff that meet either qualitative criteria (Article 3) e.g. those that head a material business unit or quantitative criteria (Article 4) e.g. where a member of staff is within 0.3% of the number of staff who have been awarded the highest total remuneration in the preceding financial year (but subject to the remaining paragraphs of that Article). The Regulation comes into force on 26 June.
