Regulatory Alerts2026-03-09
Quality as the Source of Appropriate Remuneration Policy
The Dutch Authority for the Financial Markets (AFM) issued this report to require audit firms to implement remuneration policies that effectively incentivize the quality of statutory audits. The investigation reveals that while most firms have adequate policies, key NBA measures regarding profit-independent executive pay and claw-back provisions remain inconsistently implemented. The AFM recommends that firms enhance monitoring and evaluation processes, increase transparency regarding quality criteria in partner classifications, and ensure quality is demonstrably decisive in variable compensation.
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