EBA updates remuneration guidelines: EBA has published revised guidelines that take account of the fourth Capital Requirements Directive (CRD 4) on (i) the data collection exercise regarding high earners and (ii) the remuneration benchmarking exercise. EBA will collect data on the number of individuals who earn at least €1 million per financial year, in pay brackets of €1 million. It has created a new template which will log this information so it can be assessed by institution and job responsibility. National regulators will collect information from institutions and pass it to EBA, which will then publish aggregate information. The updated guidelines already apply to the data to be collected for performance during 2013. EBA says the data will help it to analyse the development of remuneration policies following CRD 4. (Source: EBA Updates Remuneration Guidelines)
EBA publishes recovery plan RTS: EBA has published two final draft Regulatory Technical Standards (RTS) that set out:
- the information to be included in a recovery plan: this should include (i) the plan summary; (ii) information on governance; (iii) a strategic analysis; (iv) a communication plan; and (v) a description of preparatory measures; and
- the criteria that competent authorities should apply when assessing the recovery plan of an institution or a group in terms of its completeness, quality and credibility.
It has also drafted guidelines that set out the range of scenarios to be used when testing recovery plans. The RTS and guidelines recognise the need for proportionality, and propose to allow less complex institutions to design less complex recovery plans and to let Member States apply simplified obligations to certain institutions. (Source: EBA Publishes Final Draft Recovery Plan RTS)
EBA consults on O-SIIs: EBA is consulting on draft guidelines to identify institutions that are systemically important either at Member State or European Union level and that are "other systemically important institutions" (O-SIIs). EBA is trying to achieve consistency and transparency while allowing Member States to take into account the peculiarities of their own banking sectors. The guidelines propose a two-step process for identifying O-SIIs. The first step involves mandatory quantitative indicators (related to size, interconnectedness, relevance for the economy, complexity) against which national regulators will "score" each bank. Banks scoring above a certain threshold must be identified as O-SIIs, while those that score below a lower threshold can never be identified as O-SIIs. For the banks with scores between the two thresholds, there will be national discretion as to whether to identify a bank as an O-SII, but the discretion is based on supervisory judgement against a specific list of indicators. Regulators can also exclude from the process small institutions that are unlikely to pose any systemic risk. EBA asks for comment by 18 October 2014. (Source: EBA Consults on O-SIIs)
EBA updates Q&A: EBA has added a new question to its Q&A on the single rulebook. (Source: EBA Updates Q&A)