When refining their Remuneration policies, firms are reminded of the need not to overlook the corresponding disclosure requirements-see Regulatory Roundup 23 for an overview based upon the then consultation paper CP10/27. Since that time the FSA has published policy statement PS10/21 (“Implementing CRD3 requirements on the disclosure of remuneration”) which contains final rules.
Although the disclosure rules came into force on 1 January 2011 the FSA will allow firms until 31 December 2011 to make their first disclosure. Such disclosures will need to be on at least an annual basis.
Note that whilst the Remuneration Code is reflected in SYSC 19, the disclosure obligation is in BIPRU 11.5. There are no prescriptive requirements as to media and location so BIPRU 11.3.10R will apply in the same way as it applies to Pillar 3 disclosure. Firms can choose their own form of disclosure “.. provided that this is easily accessible by users, and provides appropriate cross-references to other relevant information and disclosures in the Pillar 3 context”. Note also BIPRU 11.3.10R(2) “To the degree feasible, a firm must provide all disclosures in one medium or location”.
In a similar manner to the Remuneration Code, a proportionate approach can be applied to the disclosure obligations. Please see Appendix 2 of PS10/21 for general guidance on proportionality – within which there is another Appendix 2 which sets out the disclosure requirements depending upon the ‘proportionality tier’ of the firm concerned. BIPRU limited licence/activity firms are proportionality tier four; page 7 of Appendix 2 provides further details of the four proportionality tiers.
Complyport will work with its clients to ensure that they are fully compliant with new rules within the required deadline.
