EBA is consulting on its draft guidelines for remuneration policies and practices related to the sale and provision of retail banking products and services. The draft guidelines apply to remuneration paid to staff employed by credit institutions, creditors, credit intermediaries, payment institutions and electronic money institutions, when providing deposits, payment accounts, payment services, electronic money, mortgages, and other forms of credit to consumers. They aim to implement policies and practices that will improve links between incentives and the fair treatment of consumers, thus reducing the risk of mis-selling and related conduct costs for firms. The guidelines propose to:

  • make the design and monitoring of remuneration policies and practices the responsibility of the management body ;
  • prevent conflicts of interests;
  • use quantitative and qualitative criteria for determining the level of variable remuneration; and
  • retain documents for auditing purposes.

Consultation closes 22 March 2016.(Source: EBA Consults on Retail Banking Remuneration Guidelines)