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. applied ‘in a way and to the extent that is appropriate to their size, internal organisation and the nature, the scope and complexity of their activities’ (emphasis added). 3 CEBS Guidelines, paragraphs 19 to 23. 4 CEBS Guidelines, paragraph 20 5 CEBS Guidelines, paragraph 19. 15
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. Remuneration Code staff who have, in relation to a given performance year, been Remuneration Remuneration Code staff for only part of the year. 3532. In giving this guidance, we have taken account of the remuneration principles proportionality rule. Part-year Remuneration Code staff for more than three months 3633. This paragraph applies where an individual (A) has, in relation to a given performance year, been Remuneration Code staff for a period more than three months, but less than 12 months: (1) Sub-paragraphs (3) and (4) explain how the guidance in SYSC 19A.3.34G (as mentioned in the introduction to this Part) is to be applied in relation to A. Sub-paragraphs (5) and (6) provide that in certain circumstances it may be appropriate to apply certain rules to only a proportion of A’s variable remuneration. Sub-paragraphs (7) to (9) provide examples. (2) In this paragraph: (a) (b) (c) (d) (e) ‘relevant fraction’ means the fraction derived by dividing the number of days in the given performance year for which A has been Remuneration Code staff by the number of days in the year; ‘qualifying fixed remuneration’ means A’s annual fixed remuneration in A’s capacity as Remuneration Code staff multiplied by the relevant fraction; ‘qualifying variable remuneration’ means: (i) (ii) in the case where A was an employee of the firm for the whole of the given performance year, A’s variable remuneration in relation to the performance year multiplied by the relevant fraction; in the case where A was only ever employed in the given performance year as Remuneration Code staff, A’s actual variable remuneration; ‘total qualifying remuneration’ means qualifying fixed remuneration added to qualifying variable remuneration; ‘threshold amount’ means £500,000 multiplied by the relevant fraction. (3) We do not generally consider it necessary for a firm to apply the rules referred to in (4) where, in relation to A, the following conditions are satisfied: (a) (b) Condition 1 is that A’s qualifying variable remuneration is no more than 33% of total qualifying remuneration, and Condition 2 is that A’s total qualifying remuneration is no more than the threshold amount. (4) The rules referred to in (3) are those relating to: (a) (b) (c) (d) guaranteed variable remuneration (SYSC 19A.3.40R), retained shares or other instruments (SYSC 19A.3.47R), deferral (SYSC 19A.3.49R), and performance adjustment (SYSC 19A.3.51R). 16
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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 6.2.11 G This table bel
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FCA 2013/xx (b) (c) equal to a frac
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FCA 2013/xx demonstrate this by hav
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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 connection with common
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FCA 2013/xx “Qn” indicates the
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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 that is not excluded un
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FCA 2013/xx third country countercy
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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 (2) (in accordance with
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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 1.3 Valuation … … P
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FCA 2013/xx … Calculation of the
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FCA 2013/xx The table in GENPRU 2.1
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FCA 2013/xx ... … 2.2.220R; GENPR
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FCA 2013/xx Core tier one capital:
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FCA 2013/xx 6R consolidated supervi
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FCA 2013/xx 8.13 R … … IPRU(BSO
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FCA 2013/xx 8B.3 R The Royal Bank o
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FCA 2013/xx GENPRU 2.2.174R GENPRU
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FCA 2013/xx 1.1.5 G Guidance on the
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FCA 2013/xx … (da) (e) (f) apply
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FCA 2013/xx purpose of the 5% test
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FCA 2013/xx applicable, the Banking
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FCA 2013/xx … 8.3.14 G The financ
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FCA 2013/xx GENPRU 2 Annex 6R requi
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FCA 2013/xx … 8.6 Consolidated ca
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FCA 2013/xx [deleted] 8.7.4 G BIPRU
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FCA 2013/xx Part 1 (Non-EEA regulat
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FCA 2013/xx Disclosure: Operational
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FCA 2013/xx [Note: annex V paragrap
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FCA 2013/xx 86(11) (part) of CRD]
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FCA 2013/xx … 13.1.4 G Pursuant t
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FCA 2013/XX Annex A Amendments to t
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FCA 2013/XX [deleted] … 4.2 Perso
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FCA 2013/XX [Note: article 91(9) of
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FCA 2013/XX 4.3A.5R to SYSC 4.3A.12
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FCA 2013/XX 7.1.18 R (1) A CRR firm
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FCA 2013/XX 12.4.-1R, BIPRU 12.4.5A
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FCA 2013/XX http://www.eba.europa.e
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FCA 2013/XX 19A.3.12 A 19A.3.12 B
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FCA 2013/XX 19A.3.29 R A firm must
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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
Page 440 and 441: (d) The rule on guaranteed variable
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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