Finansinspektionen has decided on new general guidelines that will replace FFFS 2011:2 on remuneration policy as of 1 January 2016.
The change only entails that the general guidelines no longer apply to insurance companies, mutual insurance companies and insurance associations since these undertakings shall instead meet the requirements on remuneration systems set out by the Solvency II regulation. No other changes have been made to the general guidelines.
Firms should have a remuneration policy that is consistent with good risk management and does not encourage short-term profits and excessive risk-taking. The regulation provides guidance on how an undertaking should manage the risks that can arise as a result of variable remuneration.
The general guidelines enter into force on 1 January 2016.