EBA publishes final guidelines on remuneration of sales staff

The EBA launched a consultation on draft guidelines in December 2015 and has made certain amendments to the final guidelines in response to feedback received. The final guidelines include separate sets of guidelines for approval and monitoring of remuneration practices and policies and amendments to clarify:

• the scope of information to be recorded by institutions in order to ensure compliance with the guidelines;
• that delegation by the management body is possible to the extent that it retains ultimate responsibility for the institution's remuneration policies and practices; and
• the need to obtain advice on remuneration policies and practices is limited to institutions that have established a remuneration committee.

The guidelines will be translated into the official EU languages and published on the EBA website, following which competent authorities will have two months to report whether they comply with the guidelines. The EBA has postponed the application date to 13 January 2018 in order to facilitate national implementation and to provide market participants with sufficient time to make necessary changes to their policies and practices.