Remuneration Reporting Requirements

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1

Applications and Definitions

1.1

Unless otherwise stated, this Part applies to:

  1. (1) a CRR firm which:
    1. (a) is a CRR firm responsible for consolidation; or
    2. (b) is not, and does not have, an EEA parent institution or an EEA parent financial holding company; and
  2. (2) a third country CRR firm in relation to its activities carried on from an establishment in the UK.

1.2

In this Part, the following definitions shall apply:

accounting reference date

means

      1. (1) (in relation to a body corporate incorporated in the UK under the Companies Acts) the accounting reference date of that body corporate determined in accordance with section 391 of the Companies Act 2006; or
      2. (2) (in relation to any other body) the last day of its financial year.

consolidation group entity

means an institution or financial institution which is, in relation to a CRR firm responsible for consolidation:

      1. (1) the CRR firm responsible for consolidation;
      2. (2) a subsidiary of the CRR firm responsible for consolidation; or
      3. (3) a subsidiary of the EEA parent financial holding company or EEA parent mixed financial holding company by which the CRR firm responsible for consolidation is controlled.

CRR firm responsible for consolidation

means a CRR firm which is either:

      1. (1) an EEA parent institution; or
      2. (2) controlled by an EEA parent financial holding company or by an EEA parent mixed financial holding company and to which supervision on a consolidated basis applies in accordance with Article 111 of CRD.

high earner

means an employee (of any consolidation group entity) whose total annual remuneration is €1 million or more per year or its equivalent in another currency determined by reference to the conversion rate applicable to the corresponding High Earners Report under this Part.

High Earners Report

means the report by which a firm provides to the PRA the information required in Chapter 3.

material risk taker

means a member of Remuneration Code Staff, as described in SYSC 19A.3.4R.

Remuneration Benchmarking Information Report

means the report by which a firm provides to the PRA the information required in Chapter 2.

total assets

means:

      1. (1) in relation to a CRR firm or an EEA Bank, its total assets as set out in its balance sheet on the relevant accounting reference date; and
      2. (2) in relation to a third country CRR firm, the total assets of the third country CRR firm as set out in its balance sheet on the relevant accounting reference date that cover the activities of the branch operation in the UK.

1.3

Unless otherwise defined, any italicised expression used in this Part and in the CRD or CRR has the same meaning as in the CRD or CRR.

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2

Remuneration Benchmarking Reporting Requirement

2.1

This chapter applies to a firm to which this Part applies, which had total assets equal to or greater than £50 billion on an unconsolidated basis on the accounting reference date immediately prior to the firm’s last complete financial year.

2.2

A firm must submit a Remuneration Benchmarking Information Report to the PRA annually.

2.3

The firm must provide to the PRA, by way of its Remuneration Benchmarking Information Report, the information disclosed in accordance with the criteria for disclosure established in points (g), (h) and (i) of Article 450(1) of the CRR.

[Note: Art. 75(1) of the CRD]

2.4

The firm must submit the Remuneration Benchmarking Information Report to the PRA within four months of the firm’s accounting reference date.

2.5

A firm that is not, and does not have, an EEA parent institution, an EEA parent financial holding company or an EEA parent mixed financial holding company must complete that report on an unconsolidated basis in respect of remuneration awarded to employees of the firm in the last completed financial year.

2.6

A firm that is a CRR firm responsible for consolidation must complete that report on a consolidated basis in respect of remuneration awarded to all employees of all consolidation group entities in the last completed financial year.

2.7

[Note: EBA/GL/2014/08]

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3

High Earners Reporting Requirement

3.1

A firm must submit a High Earners Report to the PRA annually.

3.2

The firm must submit that report to the PRA within four months of the end of the firm’s accounting reference date.

3.3

A firm that is not, and does not have, an EEA parent institution, an EEA parent financial holding company or an EEA parent mixed financial holding company must complete that report on an unconsolidated basis in respect of remuneration awarded in the last completed financial year to all high earners of the firm who mainly undertook their professional activities within the EEA.

3.4

A firm that is a CRR firm responsible for consolidation must complete that report on a consolidated basis in respect of remuneration awarded in the last completed financial year to all high earners who mainly undertook their professional activities within the EEA at:
  1. (1) the EEA parent institution, EEA parent financial holding company or the EEA parent mixed financial holding company of the UK consolidation group;
  2. (2) each consolidation group entity that has its registered office (or if it has no registered office, its head office) in an EEA state; and
  3. (3) each branch of any other consolidation group entity that is established or operating in an EEA state.

3.5

The firm’s High Earners Report must report, in pay brackets of €1m, the number of high earners, including their job responsibilities, the business area involved and the main elements of salary, bonus, long-term award and pension contribution. The number of high earners must be reported as the number of natural persons, independent of the number of working hours on which their contract is based.

[Note: Art. 75(3) of the CRD]

3.6

The firm must ensure that the information in the High Earners Report is denominated in euro, determined by reference to the exchange rate used by the European Commission for financial programming and the budget for December of the reported year.

[Note: EBA/GL/2014/07]

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