The PRA has published a Policy Statement, which includes feedback on the responses it received to its summer consultation on its proposed implementation of the remuneration provisions of the revised Capital Requirements Directive (referred to as CRD5), which will apply in the UK and the EU from 29 December 2020.
Tag: Capital Requirements Directive
FCA and PRA consult on remuneration provisions for Banks and Credit Institutions
The FCA and PRA have now both published their Consultation Papers on the implementation of the remuneration provisions of the revised Capital Requirements Directive (referred to as CRD5), which will apply in the UK and the EU from 29 December 2020. Continue reading
EBA publishes roadmap for delegated mandates under the updated prudential regime for investment firms
The European Banking Authority (EBA) has published a roadmap for implementation of its mandates arising from the Investment Firms Directive and Regulation (IFD/IFR). The IFD/IFR entered into force on 26 December 2019 and will apply from 26 June 2021. Continue reading
Latest Shake-up of the Remuneration Provisions for Banks and Investment Firms Part 2: Banks and credit institutions
Authors: Mark Ife and Paul Ellerman
After over two years of debate, agreement has finally been reached on the proposed directive amending the Capital Requirements Directive (which is generally being titled CRD5), and the European Council has published its final text.
As detailed in our previous briefing, however, the proposed new prudential regime for investment firms, will remove most investment firms from the scope of CRD5 and subject them to the specific remuneration rules in the new Investment Firms Directive (IFD) and Investment Firms Regulation (IFR). Consequently, the revised CRD5 is likely only to apply to banks and “bank-like” investment firms.
- Overview
- New remuneration rules for banks and reclassified CRD investment firms
- The proportionality principle – bonus cap and deferral
- Changes to the de minimis principle
- Minimum deferral periods
- Share-linked instruments
- Application on a group level
- Gender neutral remuneration policies
- Impact of BREXIT on CRD5
- Next steps for CRD5
- Updates
Latest Shake-up of the Remuneration Provisions for Banks and Investment Firms Part 1: Investment Firms
Authors: Mark Ife and Paul Ellerman
Agreement has now been reached between the European Parliament, the Commission and the Council on the final texts of two Directives which will impact on the remuneration provisions which apply to banks and investment firms. The first is the Investment Firms Directive (IFD), which will introduce a new prudential regime for investment firms. The second is the Directive which contains the fourth set of amendments to the Capital Requirements Directive (which is generally being titled CRD5). The European Parliament will consider both Directives in its plenary sessions between 15 and 19 April 2019.
This briefing sets out details of the remuneration provisions contained in the IFD and the related Investment Firms Regulation (IFR). A subsequent briefing will cover the revised provisions contained in CRD5.