The European Banking Authority (EBA) issued new final guidelines on 16 July 2014 in relation to data collection for high earners and remuneration benchmarking. The new guidelines amend the existing template and request more detailed information, including additional data on business areas and the breakdown of remuneration.
The FCA and PRA have published a joint consultation paper to consult on the proposed changes to the data template relating to remuneration data for the 2014 performance year onwards.
The FCA has proposed to include in its Handbook the rule relating to benchmarking, to allow for reporting from any FCA solo regulated firm that may in future have total assets of £50 billion or more. The consultation has now closed.
Who is this consultation paper aimed at?
High Earners Report
The PRA and FCA proposed to revise their existing rules on the High Earners Report. This requires those listed below to submit data on all their employees that earn a total remuneration of €1 million or more in a financial year. This applies for all subsidiaries and branches within a group based in the EEA or an EEA branch of a firm with its head office outside of the EEA.
- Building societies
- IFPRU investment firms (including IFPRU Limited Licence and IFRPU Limited Activity firms)
- Provided they are included in the scope of consolidation of an institution for which data regarding high earners is collect, a BIPRU firm, exempt CAD firm, a local and any other firm that is not a credit institution or an investment firm
No changes have been proposed to the scope of the Benchmarking Report – it is applicable to a firm with total assets of £50 billion or more. Currently there are no FCA firms that fall within the scope of this requirement.
What are the next steps?
Following the consultation, the FCA published a joint Policy Statement (PS) PS 14/14. Firms are required to submit their data (for the 2014 performance year onwards) in the following template: