The requirements in articles 92 and 94 of the CRD IV relating to the remuneration policies of institutions and the structure of the remuneration awarded by them apply to all staff whose professional activities have a material impact on the risk profile of the institution concerned. Institutions within the scope of the CRD IV are required to identify all such material risk takers taking into consideration all relevant risks for their institution. Article 94(2) delegates to the Commission the power to adopt regulatory technical standards (RTS) with respect to qualitative and appropriate quantitative criteria to identify such staff.

The European Commission has now adopted RTS on criteria to identify categories of staff whose professional activities have a material impact on an institution’s risk profile (so-called material risk takers).

The European Parliament and the Council of the EU have one month to exercise their right of scrutiny over the RTS with the possibility to extend this period for a further two months at their initiative. Following the expiry of the scrutiny period, the RTS will be published in the Official Journal of the EU and will enter into force on the twentieth day following the date of their publication.

View Commission adopts new standards to increase transparency over bankers’ pay and risk profiles, 4 March 2014

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