Regulatory Alerts2021-04-15
Added · Updated
Consultation on Supervisory Regulation on Sound Remuneration Policies
The Dutch Authority for Financial Markets and the Dutch Central Bank propose the 'Regeling beheerst beloningsbeleid Wft 2021' to replace the 2017 regulation, establishing sound remuneration policies for banks, investment firms, and pension funds. The regulation mandates specific requirements for variable remuneration, including a minimum 50% equity or equivalent instrument component, deferral periods of at least four to five years, and malus and clawback mechanisms. It introduces distinct compliance tiers: Annex A applies to banks and significant investment firms, Annex B to non-small non-connected investment firms, and Annex C to pension funds, while exempting smaller entities from certain deferral and equity requirements.