Guideline 9 - Scope of the remuneration policy

1.38. In its remuneration policy the undertaking should at least ensure that:

a) remuneration awards do not threaten the undertaking's ability to maintain an adequate capital base;

b) remuneration arrangements with service providers do not encourage risk-taking that is excessive in view of the undertaking's risk management strategy.

1.39. The participating insurance or reinsurance undertaking, the insurance holding company or the mixed financial holding company should adopt and implement a remuneration policy for the whole group. This should take into account the complexity and structures of the group in order to establish, develop and implement a consistent policy for the whole group that is in line with the group's risk management strategies. The policy should be applied to all relevant persons at group and individual entity level.

1.40. The participating insurance or reinsurance undertaking, the insurance holding company or the mixed financial holding company should ensure:

a) an overall consistency of the group's remuneration policies by ensuring that they comply with the legal requirements of undertakings which are part of the group and by verifying their correct application;

b) that all undertakings that belong to the group comply with the remuneration requirements;

c) that material risks at group level linked to remuneration issues in the group entities are managed.