On 17 September 2012, the European Securities and Markets Authority (ESMA) commenced a consultation process on "Guidelines on Remuneration Policies and Practices (MiFID)".This process concluded on 17 December 2012 and guidelines were subsequently approved by ESMA.The guidelines were published on 11 June 2013 and they apply to investment firms, credit institutions that provide investment services and UCITS management companies and external alternative investment fund managers when they are providing the investment services of individual portfolio management or non-core services.
The Central Bank of Ireland published a notice on 25 November confirming that it intends to comply with the guidelines on remuneration policies and practices and ESMA will be notified accordingly. The guidelines will come into effect on 28 January 2014. All firms within the scope of the guidelines are expected to comply with them from 28 January and to take them into account when devising their remuneration arrangements. Firms are not required to report back to the Central Bank in response to this notification.