Title I - Subject matter, scope and definitions

Subject matter and scope of these Guidelines

1.1. These Guidelines provide further details about:

• (a) the information to be submitted to the EBA regarding the benchmarking of remuneration trends and practices by competent authorities under Article 75(1) of Directive 2013/36/EU¹ ;
• (b) the benchmarking of remuneration trends and practices at EEA level, the measures to be taken to ensure the consistency of the data collected for this purpose and the procedural involvement of competent authorities in the EBA’s remuneration benchmarking exercise ('the exercise') under Article 75(2) of Directive 2013/36/EU.

1.2. These Guidelines are addressed to competent authorities.

1.3. The terms defined in Article 3 of Directive 2013/36/EU or Article 4 of Regulation (EU) No 575/2013² have the same meaning in these Guidelines.

¹ Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338). 2 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).

Scope of institutions subject to the data collection

2.1. Competent authorities should ensure that the benchmarking of remuneration practices covers at least 60% of the financial sector formed by credit institutions and investment firms in their jurisdiction, expressed in terms of the aggregated total assets of institutions as of the end of the calendar year.

2.2. Where a coverage of 60% cannot reasonably be ensured by competent authorities, for example because the market is dominated by subsidiaries of EEA parent institutions located in a different Member State and these EEA parent institutions would not be included in the data reported according to the list of institutions provided by EBA, competent authorities may alternatively submit information for up to 20 of the largest individual institutions in their Member State.

2.3. Competent authorities may include, in their national benchmarking exercise, additional institutions for which they may deem it necessary to collect data on remuneration.

2.4. Competent authorities should inform the EBA annually about institutions that should be included in the EBA’s benchmarking exercise. This can be done by informing the EBA about any changes compared to the previous year. Changes to the sample of institutions should be avoided as much as possible to ensure that the sample remains stable. Competent authorities should submit data for all institutions included in the list of institutions established by the EBA. 2.5. Competent authorities that have included subsidiaries in the list of institutions should review the list provided by the EBA to ensure that the data are not part of any consolidated data that will be collected. If the subsidiary is included in the scope of consolidation of an institution included in the EBA’s benchmarking exercise, the competent authority should ask the EBA to remove the subsidiary from the list of institutions so that data for this subsidiary is only submitted as part of the consolidated data collected.

Scope of consolidation and collection of data

3.1. Competent authorities should collect data at the highest level of consolidation as set out in Part One, Title II, Chapter 2, Section 1 of Regulation (EU) No 575/2013, i.e. at the EEA consolidated level, covering all subsidiaries and branches within a group, whether established in a Member State or in a third country. The scope of collecting data on remuneration should be the same as the scope for the application of the consolidated own funds requirements.

3.2. Competent authorities responsible for the supervision on an EEA-consolidated basis should collect the information described in these Guidelines from the institution that is responsible for meeting the requirements of Article 450 of Regulation (EU) No 575/2013 on a consolidated basis.