Through the Circular, CySEC reminds the Cypriot Investment Firms (“CIFs”) regarding EBA’s Guidelines EBA/GL/2015/22 issued on 27.06.16 on sound remuneration policies. These Guidelines apply since 01.01.17 and fulfil the following purpose:
- They fulfil the mandate given to EBA under Articles 74(3) and 75(2) of Directive 2013/36/EU (“the Directive”) on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, to issue guidelines on sound remuneration policies for all staff and staff whose professional activities have a material impact on institutions’ risk profile;
- They set out requirements regarding remuneration policies applicable to all staff and specific requirements that should apply to the remuneration policies and variable elements of remuneration of identified staff;
- They are used by CySEC during the assessment of the remuneration policies and variable elements of remuneration followed by CIFs, in the context of verifying the compliance of CIFs with their regulatory requirements.
CySEC’s expects that: CIFs that are subject to the requirements imposed by the Directive (i.e. to whom these Guidelines apply since 01.01.17), shall make every effort to comply with the Guidelines, when complying with the requirements set out in Paragraphs 20, 21, 22, 23 of CySEC’s Directive DI144-2014-14 for the prudential supervision of investment firms and Article 450 of Regulation (EU) No 575/2013 on prudential requirements for credit institutions and Investment Firms.