Suitability And Restrained Remuneration Policy Rules For Financial Institutions

Introduction

Day-to-day management and supervisory board members are increasingly subjected to strict regulatory rules. Within financial institutions, the rules regarding the suitability of these people for such positions have become increasingly strict and remuneration policies have become more restrained. It is clear that the implementation of the EU Capital Requirements Directive IV¹will further tighten the already strict regulations on financial institutions' remuneration policies. The EU financial regulator has initiated these developments because it believes that the economic crisis was caused partly by the incompetence of day-to-day management and supervisory board members, and partly by the existing, irresponsible remuneration policies.