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.
- 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