Regulatory Alerts2014-12-15
Regulations amending Finansinspektionen’s regulations regarding remuneration systems in credit institutions and investment firms
Finansinspektionen issued regulations amending FFFS 2011:1 to align Swedish remuneration rules for credit institutions, investment firms, and fund management companies with EU directives. The amendments mandate clear differentiation between fixed and variable pay criteria, require annual identification of staff with material risk impact, and impose strict deferral and malus/clawback mechanisms for variable remuneration. Significant institutions must establish independent remuneration committees and ensure that a substantial portion of variable pay for senior management is linked to equity or equivalent instruments.
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