5.5 Role of subsidiaries and branches

119.Institutions that are subsidiaries of a consolidating institution should implement within their remuneration policy the policy issued by the consolidating parent institution and the process for the identification of staff. All subsidiaries should actively participate in the identification process carried out by the consolidating parent institution. In particular, each subsidiary in the scope of prudential consolidation, including those not themselves subject to Directive 2013/36/EU, should provide the consolidating institution with all information necessary to properly identify all staff who have a material impact on the institutions ’ risk profile on a consolidated or sub-consolidated basis. 120.Subsidiaries that are not themselves subject to Directive 2013/36/EU are not required to perform an identification process at an individual level, unless they are required to do so under sector-specific remuneration requirements. For those subsidiaries that are not subject to the Directive or other specific remuneration requirements as specified under Article 109(4) of Directive 2013/36/EU, the assessment should be performed by the consolidating institution at the consolidated and sub-consolidated level, based on information provided by the subsidiary. Institutions falling within the scope of Directive 2013/36/EU should conduct their own self-assessment for the identification of staff at an individual level. Small and less complex institutions which are included in an identification process on a consolidated basis may delegate the practical application of the identification process at an individual level to the consolidating institution.

121.Branches in a Member State of credit institutions that have their head office in a third country and institutions in a Member State which are subsidiaries of parent institutions in third countries should conduct the identification process and inform their parent institution of its results. Institutions in a Member State should also include their subsidiaries that fall in the scope of prudential consolidation and branches located in third countries in their assessment. Institutions should be aware that branches form a non-independent part of the institution.

122.For third-country branches located in a Member State, the criteria for the identification should be applied in the same way to the functions, business activities and staff located in a Member State as they would be for an institution at an individual level.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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