Regulatory Alerts2021-09-17
Finansinspektionen Regulations Amending Remuneration Structures in Credit Institutions and Investment Firms (FFFS 2020:30)
Finansinspektionen amends its regulations on remuneration structures for credit institutions and investment firms to align with EU capital requirements and introduce targeted exemptions. The updated rules mandate that firms implement gender-neutral remuneration policies and require at least 40 to 60 percent of variable pay for risk-impact employees to be deferred over four to five years, with a minimum of 50 percent paid in equity or equivalent instruments. These deferral and equity mandates, along with a one-year control restriction on transferred instruments, do not apply to firms with average assets under EUR 5 billion or to employees whose annual variable remuneration does not exceed EUR 50,000.
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