On November 7, 2014, the PRA and Financial Conduct Authority (“FCA”) published a joint Policy Statement on data collection on remuneration practices under CRD IV which sets out the final remuneration data reporting requirements to be included in the PRA and FCA handbooks. The new requirements relate to updated templates to be used for the Benchmarking Information Report (“BIF”) and High Earners Report (“HER”) as part of the data collection exercises.
The updated BIF requires added detail to be included for the collecting of remuneration data, so as to ensure a more effective analysis of practices across different classes of staff. Significant banks, building societies and designated investment firms that are PRA-regulated, with a total of £50 billion in assets or more, have previously been subject to this type of exercise. Firms prudentially regulated by the FCA with total assets of £50 billion or more are now also subject to this exercise.
The updated HER requires firms to submit details on all employees with a total remuneration of €1 million or more per financial year. The scope for PRA- regulated firms remains the same, though more FCA firms will now be subject to this exercise, including EEA branches of institutions that have their head office in third countries. The new rules entered into force on November 7, 2014.
The Policy Statement is available at: