Published on 7 November 2014
CRD IV: data collection on remuneration practices – PS11/14
This joint Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) policy statement (PS) sets out the responses to feedback received from the consultation on data collection on remuneration practices PRA CP17/14 (FCA CP14/19), which closed on 17 October together with the finalised data collection rules. The regulators’ remuneration data reporting requirements are relevant for banks, building societies, PRA-designated investment firms and IFPRU (Prudential Handbook for Investment Firms) investment firms (including other types of firms where they are included in the scope of consolidation of an institution for which data is to be collected).
All respondents agreed with the PRA’s and FCA’s approach to implementing the EBA Guidelines on both the High Earners Report and the Benchmarking Report. The scope for PRA-regulated firms remains unchanged.
The new rules will be incorporated as amendments to the Supervision manual (SUP) in the FCA Handbook (SUP 16.17 (Remuneration Reporting) and associated forms/guidance notes) and to the Remuneration part of the PRA Rulebook. Firms are now required to submit data in the new template. The rules come into force on 7 November 2014.
PS11/14 is also available on the FCA’s website as PS14/14.
Policy Statement 11/14Remuneration Code data templates
CRD IV: data collection on remuneration practices – CP17/14
This joint PRA and Financial Conduct Authority (FCA) consultation paper (CP) sets out out proposed changes to both regulators’ remuneration data reporting requirements for banks, building societies, PRA-designated investment firms and IFPRU (Prudential Handbook for Investment Firms) investment firms (including other types of firms where they are included in the scope of consolidation of an institution for which data is to be collected).
The changes are in response to the European Banking Authority’s (EBA) guidelines published on 16 July 2014 on remuneration data collection for the benchmarking and high earners exercises.
Summary of proposals
CP17/14 sets out the PRA’s and FCA’s proposed amendments to its current approach to data collection of remuneration practices and the corresponding reporting requirements as reflected in the new draft data templates that firms will be required to complete. The new provisions would be incorporated in the Remuneration part of the PRA Rulebook and as amendments to the Supervision manual (SUP) in the FCA Handbook (SUP 16.17 (Remuneration Reporting).
The proposals cover the:
- Benchmarking Report; and
- High Earners Report.
The proposal is to revise the Benchmarking Report template to enable the collection of more detailed data, with additional business area data on remuneration broken down into different categories of staff and more disclosure of information about the form in which total fixed remuneration is delivered.
The PRA and FCA propose to revise their existing rules on the High Earners Report. The new rules would require affected firms to submit data on all the employees with total remuneration of €1 million or more in a financial year for all subsidiaries and branches within a group based in the European Economic Area (EEA) or an EEA branch of a firm with its head office outside of the EEA. The High Earners Report template would be revised to introduce the collection of more detailed data with additional business areas added. Additional information about the amount of total variable remuneration and the form in which it is paid is also required.
CP17/14 is also available on the FCA’s website as CP14/19.
Responses
The consultation closed on 17 October 2014.