The Capital Requirements Directive IV sets out requirements concerning remuneration which apply from 1 January 2014. Article 94(2) thereof mandates the European Banking Authority (EBA) to prepare draft regulatory technical standards (RTS) in this area.
The objectives of the draft RTS are to harmonise the criteria for the identification of staff whose professional activities have a material impact on the institution’s risk profile in order to ensure a consistent approach to the identification of such staff across the EU. The identification criteria are a combination of qualitative and quantitative criteria.
The EBA has now published the final draft RTS which it has submitted to the European Commission for adoption. They will enter into force after their publication in the Official Journal of the EU. The EBA will review the development of identification practices and the exclusion of staff during 2015.
View EBA agrees on definition of identified staff for remuneration purposes, 13 December 2013