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Application provision

3.1 The changes to this rule are effective from 23:00 on 31/12/2020.

A firm must, save where otherwise stated, apply the requirements of this Part in relation to a person (a “material risk taker”) who is:

  1. (1) an employee of a CRR firm whose professional activities have a material impact on the firm’s risk profile, including:
    1. (a) all members of the management body and senior management
    2. (b) employees with managerial responsibility over the firm’s control functions or material business units
    3. (c) employees entitled to significant total remuneration in the preceding financial year, where: 
      1. (i) that total remuneration was equal to or greater than £440,000 and equal to or greater than the average remuneration awarded to the members of the firm’s management body and senior management referred to in (a); and
      2. (ii) the employee performs the professional activity within a material business units and the activity is of a kind that has a significant impact on the relevant business unit's risk profile
    4. (d) employees whose professional activities are deemed to have a material impact on the firm’s risk profile under Articles 6 and 7 of the Material Risk Takers Regulation; or
  2. (2) an employee of a third country CRR firm who would fall within 3.1(1) if it had applied in relation to him or her.

[Note: Article 92 of the CRD and the Material Risk Takers Regulation]

3.1

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

A firm must, save where otherwise stated, apply the requirements of this Part in relation to a person (a “material risk taker”) who is:

  1. (1) an employee of a CRR firm whose professional activities have a material impact on the firm’s risk profile, including:
    1. (a) all members of the management body and senior management
    2. (b) employees with managerial responsibility over the firm’s control functions or material business units
    3. (c) employees entitled to significant total remuneration in the preceding financial year, where: 
      1. (i) that total remuneration was equal to or greater than £440,000 and equal to or greater than the average remuneration awarded to the members of the firm’s management body and senior management referred to in (a); and
      2. (ii) the employee performs the professional activity within a material business units and the activity is of a kind that has a significant impact on the relevant business unit's risk profile
    4. (d) employees whose professional activities are deemed to have a material impact on the firm’s risk profile under Articles 6 and 7 of the Material Risk Takers Regulation; or
  2. (2) an employee of a third country CRR firm who would fall within 3.1(1) if it had applied in relation to him or her.

Additional Notes


[Note: Article 92 of the CRD and the Material Risk Takers Regulation]

3.2

29/12/2020

[Deleted.]

3.3

29/12/2020

[Deleted.]

Additional Notes


[Note: Material Risk Takers Regulation]

3.4

01/07/2015

A firm must maintain a record of its material risk takers in accordance with the Record Keeping Part.

Additional Notes


[Note: Material Risk Takers Regulation]

3.5

01/07/2015

A firm must take reasonable steps to ensure that its material risk takers understand the implications of their status as such, including the potential for remuneration which does not comply with certain requirements of this Part to be rendered void and recoverable by the firm.

Additional Notes


[Note: Material Risk Takers Regulation]