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ARTICLE · 04 JULY 2017

Remuneration Policy: Principle Of Proportionality Reconfirmed

KPMG Luxembourg
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On 16 June 2017, by way of Circular N°17/658, the CSSF adopted the EBA's Final Guidelines on sound remuneration policies under Articles 74(3) and 75(2) of Directive 2013/36/EU...

LuxembourgFinance and Banking
Jean-Pascal Nepper
Jean-Pascal Nepper
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On 16 June 2017, by way of Circular N°17/658, the CSSF adopted the European Banking Authority's (EBA's) Final Guidelines on sound remuneration policies under Articles 74(3) and 75(2) of Directive 2013/36/EU [the CRD IV] and disclosures under Article 450 of Regulation (EU) No 575/2013. These Guidelines, replacing the so-called "2010 CEBS Guidelines on Remuneration Policies and Practices" published by the Committee of European Banking Supervisors (CEBS), the EBA's predecessor, were initially made public on 21 December 2015, but came into force 6 months ago, on 1 January 2017.

Why on earth would the CSSF come up with a Circular adopting the EBA Final Guidelines so late in the process, i.e. 18 months after their publication and 6 months after their entry into force? Well, in this particular case, the CSSF had little choice but to try to cope with the chaotic situation created 2 years ago by the EBA itself.

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