Remuneration: Bonus Cap

Of Relevance to: Firms subject to CRD IV (‘IFPRU Investment Firms’) Remuneration: Bonus Cap The European Banking Authority’s Guidelines on sound remuneration policies were published on 21 December last year. The Guidelines will apply from 1 January 2017 and as such the current CEBS Guidelines will be repealed with effect [...]

Read More

UCITS V Developments

Following the recent ESMA Consultation Paper on remuneration policies under UCITS V (see Regulatory Roundup 66) the FCA has published CP15/27 “UCITS V implementation and other changes to the Handbook affecting investment funds”. As may be recalled a major change in UCITS V is the introduction of the need for [...]

Read More

Remuneration Reporting

The requirement for certain firms to submit a High Earners report (in relation to employees that earn a total of €1m or more in a financial year) has been contained within SUP 16.17 since 1 November 2012. As a result of new final guidelines being issued by the European Banking [...]

Read More

New Remuneration Code

The FCA and PRA have issued a joint Consultation Paper: ‘Strengthening the alignment of risk and reward; new remuneration rules’ (CP14/14 – or CP15/14 from a PRA perspective). As will be known, SYSC 19 currently concerns the Remunerations Codes for IFPRU firms (SYSC 19A); full-scope UK AIFMs (SYSC 19B); and [...]

Read More

Remuneration under CRD 4

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 [...]

Read More

CRD IV: Remuneration and Risk Takers

The European Commission has adopted Regulatory Technical Standards on the identification of ‘material risk takers’, being those staff whose professional activities have a material impact on a firm’s risk profile – see ‘Remuneration code staff’ in SYSC 19A.3.4 and which is effectively a copy-out of Article 92(2) of the CRD. [...]

Read More

AIFMD: Remuneration

The FCA’s Quarterly Consultation CP14/4 proposes to introduce guidance on SYSC 19C (BIPRU Remuneration Code) to the effect that an AIFM that is also a BIPRU firm that complies in full with SYSC 19B (AIFMD Remuneration Code) will not have to demonstrate compliance with SYSC 19C. The above may look [...]

Read More

Incentives

A further example of the new regulatory approach of being prepared to intervene at an earlier stage (see the article on unregulated collective investment schemes in Regulatory Roundup 43) was evidenced by the release of consultative guidance on ‘Risks to customers from financial incentives’. Despite the TCF initiative, there is [...]

Read More