5. Additional specifications regarding the high-earner data collection with Annex II

For allocating staff to functions or business areas in Annex II, firms should consider the specifications in paragraphs 18 and 19, their internal organisation and the following:

• a. ‘ Members of the management body, including members of the management body of subsidiaries where the EU parent investment firm, the EU parent investment holding company or the EU parent mixed financial holding company submits data for an investment firm group, should be reported, as applicable, under the column ‘management body in its supervisory function’ or ‘management body in its management function’ independently of the business model of the firm.
• b. ‘ 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 (EU) 2014/65¹⁰ .
• c. ‘ Investment advice, order execution ’ should include the services and activities under points (1), (2) and (5) of Annex I, Section A of Directive (EU) 2014/65.
• d. ‘ Portfolio management ’ should include the services and activities under points (4) of Annex I, Section A of Directive (EU) 2014/65 and the management of portfolios in subsidiaries of the investment firm that are undertakings for the collective investment in transferable securities and alternative investment fund managers.
• e. ‘ Operation of MTF/OTF ’ should include the services and activities under points (8) and (9) of Annex I, Section A of Directive (EU) 2014/65.
• f. ‘ Independent control functions ’ should include only staff active in the independent risk management, compliance and internal audit functions as described in Section 17 of the EBA Guidelines on internal governance under Directive (EU) 2019/2034.
• g. ‘ All other high earners ’ should include high earners that cannot be allocated to one of the functions or business areas under (a) to (f).

¹⁰ 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.