On June 11, the European Securities and Markets Authority (ESMA) published a final report on the guidelines on remuneration policies and practices under the Markets in Financial Instruments Directive (2004/39/EC) (MiFID) (ESMA/2013/606). Remuneration policies should be aligned with effective conflicts of interest management duties and conduct of business risk management obligations, in order to ensure that clients' interests are not impaired by the remuneration policies and practices adopted by the firm in the short, medium and long term.

The final report also contains feedback received from ESMA's September 2012 consultation on the draft guidelines and sets out material changes to the guidelines made by ESMA following consultation. Competent authorities to which these guidelines apply must notify ESMA whether they comply or intend to comply with the guidelines, stating their reasons for non-compliance where they do not comply or do not intend to comply, within two months of the date of publication of the translated versions by ESMA. Final Report.