Summary of CySEC's Circular C507
Memo #21-2022
CySEC Circular No: C507
Date: 05/05/2022
Subject: ΕΒΑ Guidelines on sound remuneration policies under Directive (EU) 2019/2034 (EBA/GL/2021/13)
Purpose: To remind CIFs that the EBA has published the Guidelines on sound remuneration policies under Directive (EU) 2019/2034.
In Summary:
CySEC has issued the Circular C507 on 05/05/2022 to remind the Cyprus Investment Firms (the ‘CIFs’) that the European Banking Authority (“EBA”) has published the Guidelines on sound remuneration policies (the “Guidelines”) under Directive (EU) 2019/2034 (the “IFD”) which was fully incorporated and transposed into the Prudential Supervision of Investment Firms Law of 2021 (the “Law”).
CySEC notes that these Guidelines apply to national competent authorities (NCAs) and CIFs that do not fall under section 3(3) of the Law and do not meet all of the conditions to qualify as small and non-interconnected investment firms under Article 12(1) of Regulation (EU) 2019/2033, on an individual and consolidated basis.
The purpose of these Guidelines is to specify further the requirements on remuneration policies under the Law with regard to the respective governance arrangements and processes which should be applied when remuneration policies for all staff and for identified staff are implemented.
The Guidelines entered into force on 30, April, 2022.
CySEC further notes that has adopted these Guidelines by incorporating them into its supervisory practices and regulatory approach.
In addition, CySEC notes that CIFs' remuneration policies should be applied in line with these Guidelines for the performance year starting after 31 December 2021. CIFs to which these Guidelines apply should take all necessary actions in order to ensure their compliance with the Guidelines.
The Guidelines on sound remuneration policies under Directive (EU) 2019/2034 can be found on the following link: https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Guidelines/2021/EBA-GL-2021-13%20Guidelines%20on%20remuneration%20under%20IFD/1024533/Final%20Report%20on%20GL%20on%20sound%20remuneration%20policies%20under%20IFD.pdf
Read the CySEC Circular C507
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