Regulatory Alerts2023-10-13
Added · Updated
CSSF Circular 23/841: Application of ESMA Guidelines on MiFID II Remuneration Requirements
The CSSF integrates the ESMA Guidelines on MiFID II remuneration requirements (ESMA35-43-3565) into its administrative practice and regulatory approach, requiring investment firms, credit institutions, UCITS management companies, and AIFMs to comply with these standards. Circular CSSF 14/585 and Annex V to Circular CSSF 07/307 are repealed effective from the date of publication. The guidelines mandate that firms design remuneration policies aligning staff interests with clients, utilizing defined qualitative and quantitative criteria while avoiding conflicts of interest and short-termism. Firms must implement ex-post adjustment mechanisms, such as malus and clawbacks, and ensure variable remuneration is partly deferred to mitigate risks.
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