EBA Guidelines (EBA/GL/2023/08) on benchmarking of diversity practices, including policies and gender pay gap systems

24 January 2025
Ref.: 2412092

Circular no.: 6/2025
To: Financial undertakings and Association of Companies in Financial Services

Subject: EBA Guidelines (EBA/GL/2023/08) on benchmarking of diversity practices, including policies and gender pay gap systems

The European Banking Authority (EBA) has issued guidelines on benchmarking of diversity practices, including policies and gender pay gap systems, on the basis of Directive 2013/36/EU (CRD IV) and Directive 2019/2034/EU (IFD). 1 The provisions of CRD IV have been implemented in the Act on Financial Undertakings, no. 161//2002, but the IFD has not been implemented in this country. The guidelines are addressed to supervisory authorities, financial undertakings under Regulation (EU) no. 575/2013 (CRR), cf. the Act on Financial Undertakings, and securities undertakings under Regulation (EU) 2019/2033 (IFR), which has not been implemented in this country. The objective of the guidelines is to ensure consistent supervisory practice in Europe.

The guidelines further specify the EBA's data collection on, among other things, diversity and the composition of the board and management on the basis of the 10th and 11th paragraphs of Article 91. CRD IV, cf. the 4th paragraph of Article 52 of the Act on Financial Undertakings, and gender pay gap systems pursuant to Article 75. CRD IV, cf. Article 57 f. of the Act on Financial Undertakings. The guidelines also specify Article 26 and Article 34 of the IFD Directive, which is intended to be implemented in this country during the year.

The guidelines contain guidance for supervisory authorities on the selection of a sample to participate in the EBA's data collection and how the data collection should be carried out. Detailed guidance on data submission is also provided. Data collection under the guidelines takes place every three years, at which time those financial undertakings and securities undertakings that have been selected as a sample shall submit the data to the supervisory authorities based on the position at the end of the last calendar year.

According to the 3rd paragraph of Article 16 of the ESA Regulations, which were implemented by Act no. 24/2017 on the European System of Financial Supervision, competent authorities and the relevant supervised entities shall make every effort to comply with the guidelines of the supervisory authorities and general recommendations. The purpose of the guidelines is to establish coordinated, efficient and effective supervisory practice within the European financial system, in addition to ensuring common, uniform and consistent application of legislation within the EEA.

The Financial Supervision of the Central Bank of Iceland therefore directs financial undertakings and securities undertakings to familiarise themselves with the aforementioned EBA guidelines and take them into account in their operations so as to ensure that they are prepared to provide information concerning, among other things, diversity, gender pay gap systems and the composition of the board and management to the Financial Supervision. The Financial Supervision will inform those parties that are designated to participate in the data collection before 30 January of the year in which the data collection takes place.

[1] Guidelines on benchmarking of diversity practises, including diversity policies and gender pay gap under Directive 2013/36/EU and Directive 2019/2034/EU; EBA/GL2023/08

This circular will be published on the Central Bank's website together with a link to the English version of the guidelines.

Yours faithfully,
CENTRAL BANK OF ICELAND

Gísli Óttarsson
Managing Director
Prudential Supervision

Kristín Logadóttir
Head of Department
Prudential Supervision