The European Commission has published frequently asked questions (FAQs) on the Delegated Regulation on criteria to identify material risk takers.

The Commission adopted the Delegated Regulation with regard to regulatory technical standards (RTS) on identified staff on 4 March 2014 without modifying in substance the draft submitted by the European Banking Authority (EBA). The Delegated Regulation was published in the Official Journal of the EU on 6 June 2014 and entered into force on 26 June 2014. The Delegated Regulation is binding in its entirety and directly applicable in all Member States, without any further implementation being required.

The FAQs cover the key elements of the Delegated Regulation dealing with the following key questions:

  • which members of staff will be identified as material risk takers?
  • can members of staff who meet one or more of the criteria nonetheless claim that, in fact, they are not material risk takers?
  • what is the role of the national competent authority responsible for the supervision of the institutions?
  • does the RTS on identified staff contain an exhaustive set of criteria? What about material risk takers not identified by the criteria in the Delegated Regulation?

The FAQs also mention that the EBA is currently reviewing the existing CEBS Guidelines on Remuneration Policies and Practices with a view to ensuring a higher level of harmonisation of remuneration practices in line with the CRD IV. A consultation on the revised Guidelines is expected to be launched by the end of 2014.

View CRD IV – Remuneration – Regulatory Technical Standard on Identified Staff – FAQs, 26 June 2014