267. Competent authorities, when deciding on applications to use alternative arrangements, should …

Competent authorities, when deciding on applications to use alternative arrangements, should take into account:

a. that investment firms which are stock corporations (both listed and non-listed) have issued shares and therefore in general shares and in any case share-linked instruments are available for the pay-out of variable remuneration;
b. if it would be possible and proportionate for the investment firm to make use of share-linked instruments or equivalent non-cash instruments, subject to the legal structure of the investment firm;
c. if ‘other instruments’ under Article 32(j)(iii) of Directive (EU) 2019/2034 have been issued, which depends on whether an investment firm or an investment firm in the scope of consolidation has already issued such instruments and sufficient amounts of such instruments are available. Where investment firms are primarily wholesale funded, or rely to a large extent on additional Tier 1, Tier 2 or bail-in-able debt to meet their capital requirements, such instruments should be available for the purposes of variable remuneration, provided that these ‘other instruments’ comply with Commission Delegated Regulation mandated under the IFD;
d. If there are specific requirements under national labour law that prevent the use of an issued eligible instrument for the pay-out of variable remuneration.

1. Overview

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Requirements
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Standards
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