European Banking Authority Consults on Material Risk Takers for Remuneration Purposes

On May 21, the European Banking Authority (EBA) took into account the results of a 2012 survey and published a consultation on draft regulatory technical standards on criteria identifying categories of staff whose professional activities have a material impact on a financial institution’s risk profile under the proposed CRD IV Directive.  The draft standards are required under Article 90(2) of the proposed Directive and set out an identification process, as well as standard qualitative and quantitative criteria for characterizing material risk takers.

Comments can be made on the consultation paper until August 21, and the draft standards are due for submission to the European Commission by the end of March 2014.  Consultation Paper.