This joint PRA and Financial Conduct Authority (FCA) consultation paper sets out proposed changes to remuneration data reporting requirements for banks, building societies, PRA-designated investment firms and IFPRU investment firms.
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.
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:
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Benchmarking Report; and
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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.
The consultation deadline is October 17 2014.
Full information
Full consultation paper
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