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

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This document has no legal effect and it has been prepared with tracked changes to show the proposed amendments to the existing guidance that are being consulted on in this CP. GENERAL GUIDANCE ON PROPORTIONALITY: THE REMUNERATION CODE (SYSC 19A) & PILLAR 3 DISCLOSURES ON REMUNERATION (BIPRU 11) Contents PART A: INTRODUCTION & INTERPRETATION .............................................................. 3 Guidance on the remuneration principles proportionality rule .................................................. 3 Individual guidance ............................................................................................................. 54 Arrangement of guidance statement .................................................................................... 54 Interpretation ........................................................................................................................... 54 PART B: PROPORTIONALITY LEVELS ............................................................................ 86 PART C: PROCESS FOR DIVIDING FIRMS INTO PROPORTIONALITY LEVELS ...... 97 Overview ................................................................................................................................. 97 Solo Remuneration Code firms ............................................................................................... 97 Groups with more than one Remuneration Code firm ........................................................... 108 PART D: GUIDANCE TO FIRMS IN PARTICULAR PROPORTIONALITY LEVELS .1311 Purpose of proportionality levels ..........................................................................................1311 Firms to continue to consider proportionality in their individual circumstances, etc. ..........1311 Disapplication of certain remuneration principles for firms in particular proportionality levels ..............................................................................................................................................1412 PART E: GUIDANCE ABOUT PART-YEAR REMUNERATION CODE STAFF..........1412 Introduction ..........................................................................................................................1412 Part-year Remuneration Code staff for more than three months ..........................................1612 Certain part-year Remuneration Code staff for three months or less ...................................1815 Part-year Remuneration Code staff for three months or less, but where exceptional etc. payments made .....................................................................................................................1815 APPENDIX 1: SUPPLEMENTAL GUIDANCE ON DIVIDING FIRMS INTO PROPORTIONALITY LEVELS .............................................................................................2118 1
This document has no legal effect and it has been prepared with tracked changes to show the proposed amendments to the existing guidance that are being consulted on in this CP. Groups with more than one Remuneration Code firm: examples ........................................2118 Role of individual guidance ..................................................................................................2219 No table of contents entries found. Formatted: Font: 11 pt PART A: INTRODUCTION & INTERPRETATION .................................................................................. 2 Introduction ................................................................................................................................... 2 Status of guidance statement .................................................................................................................. . 2 Remuneration principles proportionality rule.......................................................................................... 2 Guidance on the remuneration principles proportionality rule ................................................................ 2 Guidance on proportionality in relation to remuneration committees and Pillar 3 remuneration disclosures............................................................................................................................. ..................... 3 Individual guidance .................................................................................................................................. 3 Arrangement of guidance statement ......................................................................................................... 3 Interpretation .................................................................................................................................. 3 PART B: PROPORTIONALITY LEVELS ............................................................................................... 5 PART C: PROCESS FOR DIVIDING FIRMS INTO PROPORTIONALITY LEVELS ........................................ 6 Overview ......................................................................................................................................... 6 Solo Remuneration Code firms ....................................................................................................... 6 BIPRU firms and Third Country BIPRU firms .......................................................................................... 6 Groups with more than one Remuneration Code firm .................................................................... 7 PART D: GUIDANCE TO FIRMS IN PARTICULAR PROPORTIONALITY LEVELS ................................. 9 Purpose of proportionality levels.................................................................................................... 9 Firms to continue to consider proportionality in their individual circumstances, etc. ................... 9 Disapplication of certain remuneration principles for firms in particular proportionality levels 10 PART E: GUIDANCE ABOUT PART-YEAR REMUNERATION CODE STAFF ......................................... 10 Introduction .................................................................................................................................. 10 Part-year Remuneration Code staff for more than three months.................................................. 11 Certain part-year Remuneration Code staff for three months or less ........................................... 13 Part-year Remuneration Code staff for three months or less, but where exceptional etc. payments made.............................................................................................................................................. 13 PART F: REMUNERATION COMMITTEES......................................................................................... 14 General ......................................................................................................................................... 14 Subsidiaries of overseas groups / third country BIPRU firms ...................................................... 14 PART G: PILLAR 3 REMUNERATION DISCLOSURES (BIPRU 11) ..................................................... 15 Requirement to make Pillar 3 remuneration disclosures .............................................................. 15 Pillar 3 remuneration disclosures & proportionality ................................................................... 15 APPENDIX 1: SUPPLEMENTAL GUIDANCE ON DIVIDING FIRMS INTO PROPORTIONALITY LEVELS.. 16 Groups with more than one Remuneration Code firm: examples ................................................ 16 Role of individual guidance .......................................................................................................... 17 APPENDIX 2: PILLAR 3 DISCLOSURE REQUIREMENTS BY PROPORTIONALITY LEVEL .................... 18 2
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Financial Conduct Authority Consult
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We are asking for comments on this
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CP13/6 CRD IV for Investment Firms
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CRD IV for Investment Firms CP13/6
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FCA 2013/xx Annex A Prudential sour
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FCA 2013/xx (a) (b) deal on own acc
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FCA 2013/xx 1.1.14 G A firm also fa
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FCA 2013/xx connected with, its reg
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FCA 2013/xx 2.1 Application 2.1.1 R
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FCA 2013/xx (a) (b) (c) the nature
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FCA 2013/xx losses because its inco
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FCA 2013/xx 2.2.18 R A firm must ha
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FCA 2013/xx [Note: article 83(3) of
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FCA 2013/xx (b) (c) sudden and seve
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FCA 2013/xx (b) provide the resolut
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FCA 2013/xx between each firm which
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FCA 2013/xx in a number of risk cat
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FCA 2013/xx Capital planning 2.2.73
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FCA 2013/xx approving and actioning
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FCA 2013/xx financial situations or
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FCA 2013/xx activities (IFPRU 2.2.1
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FCA 2013/xx suggested. 2.3.17 G The
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FCA 2013/xx (3) what plan is in pla
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FCA 2013/xx 2.3.35 G For a firm tha
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FCA 2013/xx that considers the poss
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FCA 2013/xx unexpected cash flows l
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FCA 2013/xx (1) a failure by a firm
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FCA 2013/xx single counterparty; (b
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FCA 2013/xx (4) that it has in plac
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FCA 2013/xx that firm. Calculation
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FCA 2013/xx 3.2.8 R A firm must dem
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FCA 2013/xx 126(2), 178(1)(b), 243(
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FCA 2013/xx (1) whether there is an
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FCA 2013/xx 4.3.8 G A significant I
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FCA 2013/xx set out but are outside
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FCA 2013/xx requirements in article
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FCA 2013/xx standards for data qual
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FCA 2013/xx Definition of default:
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FCA 2013/xx Variable scalar conside
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FCA 2013/xx Data considerations 4.3
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FCA 2013/xx (b) (c) (eg, external a
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FCA 2013/xx will allow such cures t
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FCA 2013/xx and not be based purely
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FCA 2013/xx downturn conditions, a
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FCA 2013/xx Direct estimates of EAD
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FCA 2013/xx Netting 4.3.119 G For c
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FCA 2013/xx 4.3.131 G As with all a
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FCA 2013/xx Low default portfolios
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FCA 2013/xx Other requirements 4.3.
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FCA 2013/xx 4.4.4 G A firm should n
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FCA 2013/xx significant risk transf
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FCA 2013/xx risk transfer notificat
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FCA 2013/xx EU CRR) should be revie
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FCA 2013/xx being recognised or the
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FCA 2013/xx with traded debt instru
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FCA 2013/xx Duration of the credit
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FCA 2013/xx Track record and financ
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FCA 2013/xx Pledge of assets, takin
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FCA 2013/xx complete and stabilised
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FCA 2013/xx properties are diversif
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FCA 2013/xx assets are highly liqui
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FCA 2013/xx market asset when it co
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FCA 2013/xx Financial strength of t
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FCA 2013/xx (f) (g) The effect of t
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FCA 2013/xx (2) contains the rule t
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FCA 2013/xx 6.1.8 G The pricing mod
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FCA 2013/xx 6.2.3 G Futures, forwar
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FCA 2013/xx (b) (c) equal to a frac
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FCA 2013/xx shifts for both VaR and
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FCA 2013/xx individual basis if it
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FCA 2013/xx material practical or l
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FCA 2013/xx the financial situation
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FCA 2013/xx consolidated situation
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FCA 2013/xx applications against ar
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FCA 2013/xx Calculation of counterc
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FCA 2013/xx [9.7 Exemptions 9.7.1 G
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FCA 2013/xx Permission 1 Internal R
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FCA 2013/xx consolidated basis for
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FCA 2013/xx 15 Own funds requiremen
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FCA 2013/xx 3.4 R For the purposes
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FCA 2013/xx (4) 40% for the period
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FCA 2013/xx (3) 0.6 during the peri
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FCA 2013/xx IFPRU 9.3 (Countercycli
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FCA 2013/xx 3.2.6R enter into a con
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FCA 2013/xx group members in excess
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FCA 2013/xx FCA to grant a waiver t
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FCA 2013/xx consolidated basis cons
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FCA 2013/xx purpose of BIPRU 10 (La
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FCA 2013/xx (ii) any private or pub
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FCA 2013/xx EEA prudential sectoral
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FCA 2013/xx financial instrument (1
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FCA 2013/xx basis under Article 73(
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FCA 2013/xx (3) (in BIPRU 12 (Liqui
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FCA 2013/xx 2.3 (Supervisory review
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FCA 2013/xx Annex C Amendments to t
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FCA 2013/xx CAPITAL REQUIREMENTS DI
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FCA 2013/xx The table in GENPRU 2.1
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FCA 2013/xx GENPRU 2.2.174R GENPRU
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FCA 2013/xx Disclosure: Operational
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Page 432 and 433: GENERAL GUIDANCE ON PROPORTIONALITY
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Page 438 and 439: proportionality rule. Part-year Rem
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Page 442 and 443: APPENDIX 1: PILLAR 3 DISCLOSURE REQ
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CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

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