Regulatory Alerts2021-06-10
Order on Remuneration Policy and Pay in Credit Institutions, Mortgage Credit Institutions, Collective Investment Undertakings, AIFMs, and Certain Holding Companies
The Danish Financial Supervisory Authority and the Ministry of Industry, Business and Financial Affairs issued this Order to implement EU directives regarding remuneration policies in credit institutions, investment firms, and related entities. It mandates the identification of material risk takers, requires boards to establish and annually review remuneration policies that promote sound risk management, and imposes strict rules on variable pay, pensions, and severance. Furthermore, it establishes detailed annual disclosure and reporting obligations to the regulator and the public to ensure transparency in executive compensation.
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