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The new rules have entered into force following publication in the Official Journal of the EU on 6 June 2014.
The new rules relate to the identification of categories of staff whose professional activities have a material impact on an institution's risk profile (so-called ‘material risk takers’). This matters because the risk takers are the people who have to comply with EU rules on variable remuneration (including bonuses).
These standards supplement the requirements of the Capital Requirements Directive (CRD IV) which entered into force on 17 July 2013 and which strengthened the rules regarding the relationship between the variable (or bonus) component of total remuneration and the fixed component (or salary). For performance from 1 January 2014 onwards, the variable component shall not exceed 100% of the fixed component of the total remuneration of material risk takers. Under certain conditions, shareholders can increase this maximum ratio to 200 per cent.