FFFS 2011:1

Finansinspektionen's regulations regarding remuneration structures in credit institutions, investment firms and fund management companies licensed to conduct discretionary portfolio management

In force from 2011-03-01

Summary

Finansinspektionen has decided on new regulations that aim to improve how the undertakings manage risks in their remuneration structures. The regulations implement the changes in the EU Credit Institution Directive regarding remuneration policies and how they are to be applied. The new regulations place general requirements on the undertakings' remuneration policies and variable remuneration.

The regulations also place specific requirements on the undertakings in terms of adapting remuneration structures to risk through, for example, regulations on performance assessment and risk adjustment as well as deferred variable remuneration.

Undertakings shall defer variable remuneration exceeding SEK 100,000 for employees who can materially affect the undertaking's risk level. Undertakings with risk-weighted assets above SEK 500 billion shall also pay out a certain part of the variable remuneration to the senior management in the form of shares or other instruments.

The requirements on disclosure of information about remuneration structures are transferred to FFFS 2007:5 regarding public disclosure of information concerning capital adequacy and risk management.

Swedish fund management companies without authorisation to conduct discretionary portfolio management are not covered by these regulations, but rather by FFFS 2011:2.

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