35. For the allocation of staff to business areas and categories of staff, investment firms should …

For the allocation of staff to business areas and categories of staff, investment firms 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. Investment firms should allocate members of management bodies of subsidiaries in Annex II to the ‘ other identified staff ’ category and in Annex I and Annex III to the respective business areas.
• b. ‘ Management body (MB) management function ’ should encompass the members of the management body at the highest consolidated level who are responsible for its management functions (i.e. executive directors). Investment firms should allocate members of management bodies of subsidiaries in Annex II to the ‘other senior management’ category and in Annex I and III to the respective business areas.
• c. ‘Other senior management’ is the staff defined in point (27) of Article 3(1) of Directive (EU) 2019/2034 other than members of the management body at the highest consolidated level.
• d. Staff that are neither ‘other senior management’ nor a me mber of the management body should be reported under ‘other identified staff’.
• e. ‘ Dealing on own account, underwriting and placing of instruments ’ should include the services and activities under points (3), (6) and (7) of Annex I, Section A of Directive 2014/65/EU⁴ .
• f. ‘ Investment advice and order execution ’ should include the services and activities under points (1), (2) and (5) of Annex I, Section A of Directive 2014/65/EU.
• g. ‘ Portfolio management ’ should include the services and activities under point (4) of Annex I, Section A of Directive 2014/65/EU and the staff that manage assets in subsidiaries that are Undertakings for Collective Investments in Transferable Securities (UCITS) or Alternative Investment Fund Managers (AIFMs) that are subject to the application of Articles 30 and 32 of Directive (EU) 2019/2034 on a consolidated basis.
• h. ‘ Operation of MTF/OTF ’ should include the services and activities under points (8) and (9) of Annex I, Section A of Directive 2014/65/EU.
• i. ‘ Independent control functions ’ should include only staff active in the independent risk management, compliance and internal audit functions as described in the EBA’s Guidelines on internal governance.⁵

4 Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU 5 EBA GL on internal governance under Directive (EU) 2019/2024, Section 15

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• j. ‘ All other staff ’ should include staff that are not included in points (a) to (i).

1. Overview

1.1 References

• Article 3 1.
• Article 30 Remuneration policies
• Article 32 Variable remuneration

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/