Regulatory Alerts2022-06-15
FMA Circular 05/2022 on Principles of Remuneration Policies and Practices
The Austrian Financial Market Authority issued Circular 05/2022 to provide guidance on implementing remuneration provisions under Articles 39, 39b, and 39c of the Austrian Banking Act. The document clarifies the scope of application for credit institutions and groups, defining fixed versus variable remuneration and establishing the principle of proportionality for different staff categories. It further mandates strict controls on variable pay, including bans on circumvention, requirements for deferral and vesting periods, and the alignment of incentives with long-term corporate success and risk management.
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