CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

CP13/6
CRD IV for Investment Firms
• allow firms to apply the discount rate referred to in article 94(1)(g)(iii) to a maximum of
25% of total variable remuneration provided it is paid in instruments deferred for a period
of not less than five years; and lower the maximum percentage; and
• place restrictions or prohibit certain types of deferred instruments. The EBA is expected to
issue regulatory technical standards by 31 March 2014 regarding specifying the types of
instruments appropriate to be used for paying variable remuneration.
Our approach to CRD IV policy changes on remuneration
3.41 This CP does not consult on the new policy changes on remuneration incorporated by CRD IV in
the Directive – i.e. limits on bonuses, national discretions and the possible use of proportionality
in connection with bonus caps. We are considering with the Treasury how to take these issues
forward, including in the context of responding to the Final Report of the Parliamentary Commission
on Banking Standards 7 . Therefore, we may need to consult on these items later in 2013.
Country-by-country disclosure of corporate information
3.42 Article 89 of the Directive states that Member States shall require that firms disclose annually,
on a consolidated basis, information broadly about their corporate identity, turnover and
numbers of employees. This information is to be disclosed from 1 July 2014.
3.43 This CP does not consult on this disclosure requirement because it is expected to be transposed
by the Treasury as part of their consultation later in 2013.
Technical amendments
3.44 The Directive also contains a number of provisions that
• recast existing EU requirements (which are currently transposed in the FCA Handbook) with
no or limited change of substance; and
• contain new requirements with limited policy change.
We intend to transpose them into our Handbook in line with our overall approach to CRD
IV transposition. Since these requirements involve no or limited policy change, we expect
them to incur minimal or no costs to firms.
3.45 Table 7 shows these areas:
7 The Parliamentary Commission on Banking Standards’ Final Report: ‘Changing banking for good’ is available at www.parliament.uk/
business/committees/committees-a-z/joint-select/professional-standards-in-the-banking-industry/news/changing-banking-for-good-report/.
28 July 2013
Financial Conduct Authority