SUP 16 Annex 33B Guidance notes for data items in SUP 16 Annex 33AR
(1) Financial year for which the remuneration is awarded
A firm's financial year should be designated by reference to the calendar year in which it ends. For example, if a firm's accounting reference date is 31 March 2013, the financial year that begins on 1 April 2013 and ends on 31 March 2014 will be the firm's 2014 financial year.
(2) Consolidation
When reporting on a consolidated basis as a UK lead regulated group, firms should where possible treat the consolidation group as a single entity (i.e. line-by-line) rather than on an aggregation basis.
(3) Reference year of data collected and currency conversion
(a) See SUP 16.17.3R (5) which provides that firms must report in euros. To convert into euros, firms must use the rates published by the European Commission for financial programming and budget for December of the reported year. The table is published on the European Commission’s website: http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/index_en.cfm 3.
The table contains monthly exchange rates. A list sorted by country name can be generated using the ‘access by list of countries’ function. Institutions should use the exchange rate applicable for the month in which the financial year ended.
Figures should be reported in full amounts.
(b) Data should comprise both fixed and variable remuneration awarded for performance during the performance year preceding the year of submission of the information.
(c) Remuneration awarded based on multi-year accrual periods that do not revolve on an annual basis, i.e. where institutions do not start a new multi-year period every year, should be fully allocated to the performance year in which the remuneration was awarded, without consideration of the point in time when the variable remuneration is effectively paid. These amounts should be reported separately to allow a further analysis of fluctuations of the variable remuneration and should not be deducted from the amount of variable remuneration reported.
(d) The information to be provided on ex-post adjustments (which adjusts remuneration for crystallisation of specific risks events), including clawback and malus, refers to the application of these arrangements for remuneration already awarded. These amounts should be reported separately and should not be deducted from the amount of variable remuneration reported.
(e) Only the amounts of variable remuneration awarded in the performance year should be reported as deferred. Deferred variable remuneration for previous periods that has not yet vested should be reported separately.
(f) Where numbers should be reported in terms of the headcount, the number of natural persons should be entered, independent of the number of working hours on which their contract is based. Where numbers should be reported in terms of the full-time equivalent, the number should be based on the percentage of time that a staff member is employed compared to a full-time contract.
(g) Staff should be classified under the function or business area where they carry out the predominant part of their business activities. The full amount of their remuneration awarded to that staff member within the group or institution should be reported under this function or business area.
(4) Data elements
These are referred to by row first and then by column, so data element 2B will be in row 2 and column B.
(5) Definitions
For the purpose of completing the form in SUP 16 Annex 33A, the following terms are defined:
Term
Definition
MB Supervisory Function
Members of the management body in its supervisory function; this includes non-executive directors of any board in the scope of consolidation.
MB Management Function
Members of the management body in its management function who have executive functions within the management body; this includes all executive directors of any board in the scope of consolidation.
Investment Banking
Include corporate finance advice services, private equity, capital markets, trading and sales.
Retail Banking
Include total lending activity (to individuals and enterprises).
Asset Management
Include portfolio management, managing of UCITS and other forms of asset management.
Corporate Functions
All functions that have responsibilities for the whole institution at the consolidated level and for subsidiaries with such functions at the solo level, e.g. Human Resources, IT.
Independent Control Functions
Staff active in the independent risk management, compliance and internal audit functions as described in the EBA’s guidelines on internal governance. Such reporting requirements should apply to these functions at the consolidated level and for subsidiaries with such functions at the solo level.
All Other
This column should include staff that cannot be allocated to one of the designated business areas.
Senior management
As defined in the Glossary, that is those persons who are a natural person and who exercise executive functions in an institution and who are responsible and accountable to the management body for the day-to-day management of the institution.
Control Functions
Control functions comprise control functions within the business units and the independent compliance, risk control and internal audit function.
Identified Staff
Staff whose professional activities have a material impact on the firm's risk profile in accordance with Regulation (EU) 604/2014 (Regulatory technical standards to identify staff who are material risk takers). For data relating to the performance year 2013, identified staff are those whose professional activities have a material impact on the firm's risk profile in accordance with SYSC 19A.3.4 R.
Fixed remuneration
Fixed remuneration includes payments, proportionate regular (non-discretionary) pension contributions or benefits (where they are without consideration of any performance criteria).
Variable remuneration
Variable remuneration includes additional payments or benefits depending on performance or, in exceptional circumstances, other contractual elements but not those which form part of routine employment packages (such as healthcare, childcare facilities or proportionate regular pension contributions). Both monetary and non-monetary benefits should be included. Amounts should be reported gross, without any reduction due to the application of the discount rate for variable remuneration for the categories of total variable remuneration, variable in cash, variable in shares and share-linked instruments, and variable in other types of instruments.
Variable remuneration in other types of instruments which has been deferred
Cash and instruments in accordance with Commission Delegated Regulation (EU) No 527/2014 (Regulatory technical standards specifying the classes of instruments that adequately reflect the credit quality of a firm as a going concern and are appropriate to be used for the purposes of variable remuneration).
Deferred variable remuneration in other types of instrument
Instruments in accordance with Commission Delegated Regulation (EU) No 527/2014 (Regulatory technical standards specifying the classes of instruments that adequately reflect the credit quality of a firm as a going concern and are appropriate to be used for the purposes of variable remuneration).
Deferred remuneration
Should be determined with reference to SYSC 19A.3.49 R. Amounts should be reported gross, without any reduction due to the application of the discount rate for deferred variable remuneration for the categories of total deferred variable remuneration, deferred variable in cash, deferred variable in shares and share-linked instruments, and deferred variable in other types of instruments.
Discretionary pension benefits
As defined in the Glossary with reference to article 4(1)(73) of the UK CRR4, which means enhanced pension benefits granted on a discretionary basis by a firm to an employee as part of that employee's variable remuneration package, which do not include accrued benefits granted to an employee under the terms of the company pension scheme.
(6) Specific guidance on data fields
Field
Guidance
Information on remuneration of identified staff
3B-I
Number of staff
The number of staff should be reported as a headcount figure and be based on year end numbers.
4C-I
Total number of staff
The total number of staff should be expressed in full time equivalents (FTE) and be based on year end numbers.
6B-I
Total remuneration
The total remuneration figure (fixed and variable) awarded in the remuneration year expressed per function.
7B-I
Variable remuneration
The total variable remuneration awarded in the remuneration year expressed per function.
Business Areas
8B-C
Members of management body
The number of management body members should be reported as a headcount figure and be based on year end numbers.
9D-I
Number of identified staff
The total number of staff should be expressed in full time equivalents (FTE) and be based on year end numbers.
10D-I
Number of identified staff in senior management positions
The number of identified staff in senior management positions should be reported as a headcount figure and be based on year end numbers.
11B-18I
Fixed remuneration
Variable remuneration
Deferred fixed and variable remuneration should not be included in these fields.
19B-22I
Deferred remuneration
Includes deferred variable remuneration.
Additional information regarding the amount of total variable remuneration
23B-I
Total amount of outstanding deferred variable remuneration
This position includes the deferred variable remuneration which was awarded in previous periods and which has not yet vested. Amounts should be reported gross, without any reduction due to the application of the discount rate for deferred variable remuneration.
24B-I
Total amount of explicit ex post performance adjustments applied in year
Expressed as a monetary value. Explicit ex post performance adjustment in accordance with SYSC 19A.3.51 R and SYSC 19A.3.51A R.
25B-I
Number of beneficiaries of guaranteed variable remuneration (new sign-on payments)
Expressed as number of individuals.
26B-I
Total amount of guaranteed variable remuneration (new sign-on payments)
Expressed as a monetary value. Guaranteed variable remuneration in accordance with SYSC 19A.3.40 R.
28B-I
Severance payments
The total monetary value of severance payments in the financial year.
30B-I
Number of beneficiaries
The total number of beneficiaries expressed as individuals.
31B-I
Total amount of contributions to discretionary pension benefits in year
The total amount of contributions should be provided in euros.
32B-I
Variable remuneration for multi-year periods which are not revolved annually
See Guidance note (3)(c).
2 Information on identified staff remunerated EUR 1 million or more in year
33A-XC2
Total remuneration payment band
The number of identified staff within each pay bracket should be expressed in headcount figures. Further brackets should be added in ranges of EUR 1 million where needed.