On 25 July 2014, the Central Bank published the findings of an extensive themed review of sales incentives together with new guidelines on variable remuneration arrangements for sales staff in credit institutions, insurance companies and investment firms. This area is a key priority for the Central Bank and the chairperson of every firm within the scope of the review will be required to confirm that (a) their firm's variable remuneration structures have been examined in light of the findings of the review and (b) relevant changes have been implemented by the end of the year. The Central Bank intends to review compliance over the next two years and has directed firms to have their internal audit function assess (in the first half of 2016) whether their remuneration arrangements are in line with the new guidelines.
The Central Bank will require all banking, insurance and investment firms to review and restructure their remuneration arrangements in light of these Guidelines. The Chair of each firm must confirm to the Central Bank that this has been completed in advance of the remuneration period commencing on 1 January 2015.