44. For the allocation of staff to business areas, institutions should consider their internal …

For the allocation of staff to business areas, institutions should consider their internal organisation and the following:

• a. ‘ Management body (MB) supervisory function ’ should encompass the members of the management body at the highest level of consolidation acting in the role of overseeing and monitoring management decision-making (i.e. non-executive directors), as specified in the instructions to table REM1 column letter (a) of Commission Implementing Regulation (EU) 2021/637. Institutions should allocate members of management bodies of subsidiaries to the relevant business area under points (c) to (i) where such a breakdown is provided, and otherwise to the ‘other identified staff’ category.
• b. ‘ Management body (MB) management function ’ should encompass the members of the management body at the highest consolidating level who are responsible for its management functions (i.e. executive directors) as specified in the instructions to table REM1 column letter (a) of Commission Implementing Regulation (EU) 2021/637. Institutions should allocate members of management bodies of subsidiaries to the relevant business area under points (c) to (i) where such a breakdown is provided, and otherwise to the ‘other senior management’ category.
• c. ‘ Investment banking ’ should include corporate finance, trading and sales as defined in Article 317, Table 2 of Regulation (EU) 575/2013, capital market-driven transactions as defined in Article 193(3) of Regulation (EU) 575/2013, and private equity.
• d. ‘ Retail banking ’ should include the institution ’ s total lending activity (to individuals and enterprises).
• e. ‘ Asset management ’ should include asset management within:

16

• i. the institution that is included in the sample;
• ii. subsidiaries that are institutions, including investment firms having regard to Article 1(2) or (5) of Regulation (EU) 2019/2033; and
• iii. subsidiaries that are investment firms, undertakings for collective investment in transferable securities (UCITS), alternative investment fund managers (AIFM) or investment firms that are subject to the application of Articles 92 and 94 of Directive 2013/36/EU on a consolidated basis following the application of Article 109 (5) or (6) of this Directive.
• f. ‘ Corporate functions ’ should include staff in all functions that have responsibilities for the whole institution at the consolidated level and for subsidiaries with such functions at the individual level, e.g. human resources and information technology.
• g. ‘ Independent control functions ’ should include only staff active in the independent risk management, compliance and internal audit functions as described in Section 19 of the EBA guidelines on internal governance under Directive 2013/36/EU.
• h. For Annex I , ‘s taff in subsidiaries subject to a specific remuneration framework ’ should be understood as including all staff who are employed by a subsidiary which is an investment firm, UCITS or AIFM that is subject to a specific remuneration framework and not subject to the application of the remuneration requirements on a consolidated basis as set out in Article 109 of Directive 2013/36/EU.
• i. ‘ All other staff ’ should include staff and members of the management body of subsidiaries, other than investment firms, UCITS and AIFM, that cannot be allocated to the categories under (a) to (h).

1. Overview

1.1 References

• Article 193 3.

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/