Content Options

View Options

Status: You are viewing the version of the handbook as on 2012-12-13.

SUP 16.17 Remuneration reporting

Purpose

SUP 16.17.1GRP

1The purpose of this section is to ensure that the FSA receives regular and comprehensive information about remuneration in a standard format to assist it to benchmark remuneration trends and practices and to collect remuneration information on high earners. It also takes account of the Capital Requirements (Amendment) Regulations 2012 (SI 2012/917) together with the European Banking Authority's Guidelines to article 22(3) and (5) of the Banking Consolidation Directive.

Interpretation

SUP 16.17.2RRP

In this section "UK lead regulated group" means a UK consolidation group that is headed eitherby an EEA parent institution or by an EEA parent financial holding company.

Remuneration Benchmarking Reporting Requirements

SUP 16.17.3RRP
  1. (1)

    A firm to which this rule applies must submit a Remuneration Benchmarking Information Report to the FSA annually.

  2. (2)

    The firm must complete that report in the format set out in SUP 16 Annex 33A R.

  3. (3)

    The firm must submit that report to the FSA within four months of the firm's accounting reference date.

  4. (4)

    A firm that:

    1. (a)

      is not part of a UK lead regulated group must complete that report on an unconsolidated basis in respect of remuneration awarded to employees of the firm in the last completed financial year;

    2. (b)

      is part of a UK lead regulated group must not complete that report on either a solo consolidation basis or an unconsolidated basis. The firm must complete that report on a consolidated basis in respect of remuneration awarded to all employees in the UK lead regulated group in the last completed financial year.

  5. (5)

    The firm must complete the report in the currency of its annual audited accounts.

  6. (6)

    A firm to which this rule applies on the date it comes into effect must submit two reports by 31 December 2012: one for each of the previous two complete financial years that ended before this rule came into effect.

  7. (7)

    This rule applies to:

    1. (a)

      a BIPRU firm; and

    2. (b)

      a third country BIPRU firm;

      that:

    3. (c)

      is not a BIPRU limited licence firm or a BIPRU limited activity firm; and

    4. (d)

      is not, and does not have, an EEA parent institution or an EEA parent financial holding company;

      and that firm had total assets equal to or greater than £50 billion on an unconsolidated basis on the accounting reference date immediately prior to the firm's last complete financial year.

  8. (8)

    This rule also applies to:

    1. (a)

      a BIPRU firm; and

    2. (b)

      a third country BIPRU firm;

      a bank;

    3. (c)

      is not a BIPRU limited licence firm or a BIPRU limited activity firm; and

    4. (d)

      is part of a UK lead regulated group;

      and that firm had total assets equal to or greater than £50 billion on an unconsolidated basis on the accounting reference date immediately prior to the firm's last complete financial year.

    that:

  9. (9)

    In this rule "total assets" means

    1. (a)

      in relation to a BIPRU firm, the firm's total assets as set out in its balance sheet on the relevant accounting reference date; and

    2. (b)

      in relation to a third country BIPRU firm, the total assets of the firm as set out in its balance sheet on the relevant accounting reference date that cover the activities of the branch operation in the United Kingdom.

High Earners Reporting Requirements

SUP 16.17.4RRP
  1. (1)

    A firm to which this rule applies must submit a High Earners Report to the FSA annually.

  2. (2)

    The firm must submit that report to the FSA within four months of the end of the firm's accounting reference date.

  3. (3)

    A firm that is not part of a UK lead regulated group must complete that report on an unconsolidated basis in respect of remuneration awarded in the last completed financial year to all high earners of the firm who mainly undertook their professional activities within the EEA.

  4. (4)

    A firm that is part of a UK lead regulated group must not complete that report on either a solo consolidation basis or an unconsolidated basis. The firm must complete that report on a consolidated basis in respect of remuneration awarded in the last completed financial year to all high earners who mainly undertook their professional activities within the EEA at:

    1. (a)

      the EEA parent institution or EEA parent financial holding company of the UK lead regulated group; and

    2. (b)

      each subsidiary of the UK lead regulated group that has its registered office (or, if it has no registered office, its head office) in an EEA State; and

    3. (c)

      each branch of the UK lead regulated group that is established or operating in an EEA State.

  5. (5)

    The firm must complete a separate template, in the format set out in SUP 16 Annex 34A R, for each EEA State in which there is a high earner. Those templates together form the report.

  6. (6)

    High earners who carried out their professional activities in an EEA State should be classified under that EEA State.

  7. (7)

    High earners who carried out their professional activities in more than one EEA State should be classified under the EEA State where they mainly undertook their professional activities.

  8. (8)

    A firm to which this section applies on the date it comes into effect must submit two reports by 31 December 2012: one for each of the previous two complete financial years that ended before this section came into force.

  9. (9)

    The information in the reportmust be denominated in euros determined, if necessary, by reference to the conversion rate table specified from time to time by the European Banking Authority as applicable to that year's High Earners Report.

  10. (10)

    This rule applies to BIPRU firm and a third country BIPRU firm that

    1. (a)

      is not a BIPRU limited licence firm or a BIPRU limited activity firm; and

    2. (b)

      is not, and does not have, an EEA parent institution or an EEA parent financial holding company.

  11. (11)

    This rule also applies to a BIPRU firm and a third country BIPRU firmthat :

    1. (a)

      is not a BIPRU limited licence firm or a BIPRU limited activity firm; and

    2. (b)

      is part of a UK lead regulated group.

  12. (12)

    This rule also applies to a BIPRU limited licence firm or a BIPRU limited activity firm:

    1. (a)

      that is part of a UK lead regulated group; and

    2. (b)

      where that UK lead regulated group contains a BIPRU firm or a third country BIPRU firm that is not a BIPRU limited licence firm or a BIPRU limited activity firm.

SUP 16.17.5GRP

Firms' attention is drawn to SUP 16.3.25 G regarding a single submission for all firms in a group.