Regulatory AlertsCPG 511 Remuneration: Guidance on Prudential Practice
The Australian Prudential Regulation Authority issued this Prudential Practice Guide to provide guidance to regulated entities on implementing Prudential Standard CPS 511 regarding remuneration practices. The document outlines requirements for aligning remuneration frameworks with risk management, emphasizing Board oversight, the establishment of Remuneration Committees for significant institutions, and the use of non-financial measures to mitigate conduct risk. It details specific obligations for senior managers, material risk-takers, and risk control personnel, while mandating deferral and clawback arrangements to ensure long-term soundness and prudent decision-making.
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