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.
Jointly with the PRA we published changes to our rules to incorporate EBA’s guidelines in CP14/19 relating to remuneration data for the 2014 performance year onwards.
Based on the feedback we have received, we did not make any amendments and have decided to proceed with the original proposal, subject to some minor amendments made by the EBA when testing the templates.
Who is this Policy Statement aimed at?
High Earners Report
The revised rules require 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
The scope of the Benchmarking Report has remained unchanged, and 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?
The new rules come into force on 7 November 2014. They have been incorporated as amendments to the Supervision manual (SUP) in the FCA Handbook (SUP 16.17 (Remuneration Reporting) and associated forms / guidance notes) and into the Remuneration part of the PRA Rulebook. Firms will be required to submit data in the new format for the 2014 performance year onwards: