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
The European Securities and Markets Authority ("ESMA") has published its final guidelines on the remuneration requirements of the UCITS V directive (the "UCITS V Guidelines"). The key issue addressed by ESMA is the ability for smaller or less complex managers to disapply certain of the more onerous remuneration requirements (including the "Pay Out Process Rules") on the basis of the proportionality principle.
On 23 July 2015, the European Securities and Markets Authority (“ESMA”) published its draft guidelines on the implementation of the UCITS V remuneration principles for consultation. In the consultation, ESMA’s approach to the application of proportionality differs from that of the European Banking Authority (EBA) in its consultation on revised CRD IV remuneration guidance, with ESMA suggesting that the co-legislators may have envisaged the possibility that the application of proportionality could lead to the disapplication of certain of the remuneration principles. Continue reading
Limited licence/limited activity firms subject to the requirements of the Capital Requirements Directive (CRD IV) will have received email correspondence from the FCA requesting information in relation to their high earners in 2013. This information has not previously been collected by the FCA from such firms and we have received a number of queries as to why this is now being requested, and whether firms are required to comply by the 10 November deadline. Continue reading
Yesterday afternoon it was announced that the UK Government has launched a legal challenge in the Court of Justice of the European Union against the cap on variable remuneration introduced by the new capital requirements directive (“CRD IV”). Although this may ultimately result in the cap being overturned, the UK may nonetheless have to implement the provisions in the interim, in which case, those affected will be hoping that the decision of the Court of Justice is reached before the 2015 bonus round when the bonus cap is likely to bite. Continue reading
The Financial Conduct Authority (“FCA”) and the Prudential Regulatory Authority (“PRA”) have each published a consultation on the implementation of the new Capital Requirements Directive (“CRD IV”) in the UK, which address implementation of the remuneration provisions. Continue reading
Last month, the joint Board of Appeal of the European Supervisory Authorities (the Appeal Board) published its first decision allowing an appeal brought by an Estonian company, SV Capital OU (“the customer”) against the European Banking Authority (EBA). The case arose following litigation brought by a customer against its bank, from the EBA’s decision not to investigate the alleged failure of national competent authorities to take regulatory action, at the customer’s request. The case is of interest because it effectively holds that the assessment of suitability of the management of a credit institution does not simply apply to management at the level of the credit institution, but can also apply to key function holders who have a crucial role in the day-to-day management of its business. Continue reading