High Earner data collections under CRD and IFD – Asset Management Business Line

Could you please confirm that the « validation rule v09288_m » which control that variable compensation (row0100) ≤ 2 x fixed compensation (row0060) in the REM04 High Earners template (« Final report on GLs on the high earner data collections under CRD and IFD ») should not be applied to Asset Management (col.0050) Business Line for staff Members who aren’t identified as Material Risk Takers as they don’t have a material impact on the consolidating institution - Asset Management applies a specific remuneration framework other than CRD (AIFMD).

Directive CRD5 specifies the following point: “Article 109 : 4.The remuneration requirements laid down in Articles 92, 94 and 95 shall not apply on a consolidated basis to either of the following: (a) subsidiary undertakings established in the Union where they are subject to specific remuneration requirements in accordance with other Union legal acts”. In consequence, according to this article, the maximum ratio of 200% between variable and fixed compensation does not apply to Asset Management, which is submitted to AIFMD Directive (2011/61/EU) on alternative investment fund managers.   This point is also specified in the EBA’s GL on sound compensation which specify: “Scope of application :   9. When meeting the requirements under Title VII, Chapter 2, Section II of Directive 2013/36/EU in line with Article 109 of this Directive at the consolidated or sub-consolidated level, parent undertakings and subsidiaries subject to Directive 2013/36/EU should ensure that the arrangements, processes and mechanisms set out in the Directive and these guidelines are implemented in and complied with on a consolidated basis by their subsidiaries not subject to this Directive that are within the scope of prudential consolidation, including:   c. any subsidiary and its staff (including identified staff), where this undertaking is subject to specific remuneration requirements in accordance with other instruments of Union legal acts or would be subject to such requirements if it were established in the Union with regard to gender-neutral remuneration policies under Article 74 of Directive 2013/36/EU, but excluding the remuneration requirements under Articles 92, 94 and 95 of Directive 2013/36/EU and the related guidelines”.