The follow-up report concluded that Competent Authorities have taken measures in this respect and, where necessary, asked institutions to implement the necessary changes. However, such measures will, in most cases, only be effective for the remuneration awarded for the performance year 2015, while only in few cases were changes to institutions' remuneration policies and practices already made for the performance year 2014.

 

In particular, all Competent Authorities clarified that the review of institutions' remuneration policies and practices under their respective jurisdictions was part of their on-going supervision. Some Competent Authorities also indicated to have taken further supervisory measures following the publication of the European Banking Authority's (EBA) Opinion to ensure that institutions met the criteria listed in it.  

 

Considering that the EBA's Opinion was published in October 2014, it was not always possible for institutions to retroactively change their practices for the performance year 2014. Most of the jurisdictions where it was observed that the use of allowances was not fully in line with the EBA's Opinion, took measures that will only affect the remuneration awarded for the performance year 2015, while some Competent Authorities already aimed to ensure that the criteria specified in the EBA's Opinion were applied for the performance year 2014.

 

The follow-up report also highlighted that none of the Member States or Competent Authorities have, so far, adopted specific legal or regulatory instruments following the publication of the EBA's Opinion. This is mainly because the adoption of the final EBA Guidelines on sound remuneration policies is awaited. These Guidelines, which are expected to be finalised by the end of 2015, will contain further criteria to identify both fixed and variable components of remuneration.