Summary of CySEC's Circular C576
Memo #30-2023
CySEC Circular No: C576
Date: 06/06/2023
Subject: Adoption of the European Banking Authority (‘the ‘EBA’) Guidelines: (a) On the benchmarking exercises on remuneration practices and the gender pay gap under Directive (EU) 2019/2034 (EBA/GL/2022/07) and (b) On the data collection exercises regarding high earners under Directive 2013/36/EU and under Directive (EU) 2019/2034 (EBA/GL/2022/08)
Purpose: To bring to the attention of the CIFs two EBA Guidelines issued on 30/06/2022 and inform for information to be submitted to CySEC.
In Summary:
CySEC has issued the Circular C576 on 02/06/2023 to bring to the attention of the Cyprus Investment Firms (the “CIFs”) the following EBA Guidelines which were issued on 30/06/2022:
(a) On the benchmarking exercises on remuneration practices and the gender pay gap under Directive (EU) 2019/2034 (EBA/GL/2022/07) (the “Guidelines on benchmarking exercises on remuneration practises and gender pay gap”) and
(b) On the data collection exercises regarding high earners under Directive 2013/36/EU and under Directive (EU) 2019/2034 (EBA/GL/2022/08) (the “Guidelines on data collection exercises regarding high earners”).
CySEC informs that has adopted the Guidelines, under sections 18 and 28 of the Prudential Supervision of Investment Firms Law of 2021, which transpose Articles 25 and 34 of the Directive (EU) 2019/20341 (the “IFD”), by incorporating them into its supervisory practices and regulatory approach.
Also, CySEC informs that the Guidelines on benchmarking exercises on remuneration practises and gender pay gap and the Guidelines on data collection exercises regarding high earners apply to CIFs that fall under sections 9(1), (3) and (4) of the Prudential Supervision of Investment Firms Law of 2021, ie. with initial capital requirement of €150.000 and €750.000.
CySEC further informs that the below information must be submitted to CySEC by CIFs, by 15 June of each calendar year:
• information on remuneration of all staff as set out in Annex I of the Guidelines on benchmarking exercises on remuneration practises and gender pay gap,
• additional information on remuneration for identified staff as set out in Annex II and Annex III of the Guidelines on benchmarking exercises on remuneration practises and gender pay gap, and
• information on derogations as specified in Annex IV of the Guidelines on benchmarking exercises on remuneration practises and gender pay gap.
Furthermore, the below information must be submitted to CySEC by CIFs, by 15 June every three years, starting from 2024, with regard to the financial year 2023:
• information set out in Annex V of the Guidelines on benchmarking exercises on remuneration practises and gender pay gap.
With this Circular C576, CySEC highlights that the remuneration data, i.e. Annex I to IV of the Guidelines on benchmarking exercises on remuneration practises and gender pay gap, for the financial year ending in 2022, should be submitted by CIFs to CySEC by 31 August 2023.
This Circular C576 refers also to Guidelines on data collection exercises regarding high earners. CySEC informs that data for high earners should be submitted to CySEC each year for any given financial year by 15 June of the next calendar year. CySEC notes that the high earners data for the financial year ending in 2022 should be submitted by CIFs by 31 August 2023.
CySEC further notes that the benchmarking data, gender pay gap data and high-earners data should be submitted to CySEC though CySEC’s Xbrl Portal only.
With this Circular C576, CySEC urges CIFs to consider the EBA Guidelines and where necessary, take actions to ensure compliance with their provisions.
EBA Guidelines on the benchmarking exercises on remuneration practices and the gender pay gap under Directive (EU) 2019/2034 (EBA/GL/2022/07) can be found on the following link: https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Guidelines/2022/EBA-GL-2022-07%20GLs%20on%20remuneration%20IFD/1036476/Final%20report%20on%20GLs%20on%20remuneration%20and%20pay%20gap%20benchmarking%20under%20IFD.pdf
EBA Guidelines on the data collection exercises regarding high earners under Directive 2013/36/EU and under Directive (EU) 2019/2034 (EBA/GL/2022/08) can be found on the following link: https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Guidelines/2022/EBA-GL-2022-08%20GL%20on%20high%20earners/1036477/Final%20report%20on%20GLs%20on%20the%20high%20earner%20data%20collections%20under%20CRD%20and%20IFD.pdf
Read the CySEC Circular C576
Read more news at Regulatory News
