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Version status: In force | Document consolidation status: Updated to reflect all known changes
Version date: 21 September 2021 - onwards

Regulation 29 Variable remuneration

(1) Variable remuneration awarded and paid by an investment firm to categories of staff referred to in Regulation 27(1) shall comply with all of the following requirements in a manner that is appropriate to its size and internal organisation and to the nature, scope and complexity of its activities:

(a) where variable remuneration is performance related, the total amount of variable remuneration is based on a combination of the assessment of the performance of the individual, of the business unit concerned and of the overall results of the investment firm;

(b) when assessing the performance of the individual, both financial and non-financial criteria are taken into account;

(c) the assessment of the performance referred to in subparagraph (a) is based on a multi-year period, taking into account the business cycle of the investment firm and its business risks;

(d) the variable remuneration does not affect the investment firm’s ability to ensure a sound capital base;

(e) there is no guaranteed variable remuneration (other than in respect of the first year of employment of new staff employed by an investment firm with a strong capital base);

(f) payments relating to the early termination of an employment contract reflect performance achieved over time by the individual and shall not reward failure or misconduct;