5.2 Governance of the identification process

The management body has the ultimate responsibility for the identification process and the respective policy. The management body in its supervisory function should:

• a. approve the identification process policy as part of the remuneration policy;
• b. be involved in the design of the self-assessment;
• c. ensure that the assessment for the identification of staff is properly made in accordance with Directive (EU) 2019/2034, the RTS on identified staff and these guidelines;
• d. oversee the identification process on an ongoing basis;
• e. approve any material exemptions from or changes to the adopted policy and carefully consider and monitor their effect;
• f. approve or oversee any exclusion of staff in accordance with the RTS on identified staff where the investment firm deems that the quantitative criteria defined in the RTS on identified staff are not met by the staff, as they, in fact, do not have a material impact on the risk profile of the investment firm or the assets it manages;
• g. periodically review the approved policy and, if needed, amend it.

Where a remuneration committee is established, it should be actively involved in the identification process in line with its responsibilities for the preparation of decisions regarding remuneration. Where no remuneration committee is established, the non-executive and where possible the independent members of the management body in its supervisory function should execute the respective tasks.

The compliance function, the risk management function or the staff entrusted with the risk management procedures, the business support functions (e.g. legal, human resources) and the relevant committees of the management body (i.e. risk, nomination and audit committees) should be involved in the identification process in accordance with their respective role and also on an ongoing basis. In particular, where a risk committee is established, it should be involved in the identification process without prejudice to the tasks of the remuneration committee. Investment firms should ensure a proper exchange of information among all internal bodies and functions involved in the identification process. The identification process and its result should be subject to an independent internal or external review.