Updated ESMA Guidelines on MiFID remuneration requirements

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On 31 March 2022, the European Securities and Markets Authority (“ESMA”) published its Final Report – Guidelines on certain aspects of the MiFID II remuneration requirements (the “2022 Guidelines”)

The 2022 Guidelines replace the former 2013 Guidelines on remuneration policies and practices issued in relation to the MiFID I conflicts of interest and conduct of business requirements applicable in the area of remuneration (the “2013 Guidelines”).

I. Key changes compared to the 2013 Guidelines


The key changes introduced via the 2022 Guidelines compared to the 2013 Guidelines can be summarised as follows:

Based on the foregoing, the recommendations included in the 2022 Guidelines have been reorganised and divided into three new sections:

1) Design of remuneration policies and practices

2) Governance

3) Controlling risks related to remuneration policies and practices

 

II. Application timeline


The 2022 Guidelines specify that they will apply to competent authorities and firms from six months of their date of publication on ESMA’s website in all EU official languages.

The 2013 Guidelines will cease to apply on the same date.

III. Other recent updates on remuneration requirements


Similar to ESMA, the European Banking Authority (“EBA”) has also recently published guidelines on sound remuneration policies under IFD (applying as of 30 April 2022) and updated the guidelines on sound remuneration policies under CRD (applying as of 31 December 2021).

To read the new ESMA Guidelines on MiFID II remuneration requirements, click here_

To read the new EBA Guidelines on sound remuneration policy under CRD, click here_

To read the new EBA Guidelines on sound remuneration policy under IFD, click here_


If you require any assistance in relation to remuneration requirements under MiFID II, IFD or CRD, contact us.

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