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SUP 16.17 Remuneration reporting

Purpose

SUP 16.17.1G

1The purpose of this section is to ensure that the FCA4 receives regular and comprehensive information about remuneration in a standard format to assist it to benchmark remuneration trends and practices and to collect remuneration information on high earners. It also takes account of the Capital Requirements Regulations 2013 (SI 2013/3115) together with the European Banking Authority's Guidelines to article 75(1) and (3) of the CRD4.

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Interpretation

SUP 16.17.2R

In this section "UK lead regulated group" means an FCA consolidation group 4that is headed by an EEA parent institution , 4 an EEA parent financial holding company or an EEA parent mixed financial holding company4.

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Method for submitting remuneration reporting5

SUP 16.17.2AR

5Firms must submit the reports required by SUP 16.17.3 R and SUP 16.17.4 R online through the appropriate systems accessible from the FCA’s website.

4
SUP 16.17.3R
  1. (1)

    4A firm to which this rule applies must submit a Remuneration Benchmarking Information Report to the FCA annually.

  2. (2)

    The firm must complete the Remuneration Benchmarking Information Report in the format set out in SUP 16 Annex 33A.

  3. (3)

    The firm must submit the Remuneration Benchmarking Information Report to the FCA within four months of the firm's accounting reference date.

  4. (4)

    A firm that:

    1. (a)

      is not part of a UK lead regulated group must complete that report on an unconsolidated basis in respect of remuneration awarded to employees of the firm in the last completed financial year;

    2. (b)

      is part of a UK lead regulated group must not complete that report on either a solo consolidation basis or an unconsolidated basis. It must complete that report on a consolidated basis in respect of remuneration awarded to all employees in the UK lead regulated group in the last completed financial year.

  5. (5)

    The firm must complete the Remuneration Benchmarking Information Report using accounting year-end amounts in euros determined, if necessary, by reference to the exchange rate used by the European Commission for financial programming and the budget for December of the reported year.

  6. (6)

    This rule applies to:

    1. (a)

      an IFPRU investment firm; and

    2. (b)

      an overseas firm that:

      1. (i)

        is not an EEA firm;

      2. (ii)

        has its head office outside the EEA; and

      3. (iii)

        would be an IFPRU investment firm, if it had been a UK domestic firm, had carried on all of its business in the United Kingdom and had obtained whatever authorisations for doing so as are required under the Act;

    that:

    1. (c)

      is not, and does not have, an EEA parent institution, an EEA parent financial holding company or an EEA parent mixed financial holding company, and that had total assets equal to or greater than £50 billion on an unconsolidated basis on the accounting reference date immediately prior to the firm's last complete financial year.

  7. (7)

    This rule also applies to:

    1. (a)

      an IFPRU investment firm; and

    2. (b)

      an overseas firm that

      1. (i)

        is not an EEA firm;

      2. (ii)

        has its head office outside the EEA; and

      3. (iii)

        would be an IFPRU investment firm, if it had been a UK domestic firm, had carried on all of its business in the United Kingdom and had obtained whatever authorisations for doing so as are required under the Act;

    that:

    1. (c)

      is part of a UK lead regulated group, and that had total assets equal to or greater than £50 billion on an unconsolidated basis on the accounting reference date immediately prior to the firm's last complete financial year.

  8. (8)

    In this rule “total assets” means:

    1. (a)

      in relation to an IFPRU investment firm, its total assets as set out in its balance sheet on the relevant accounting reference date; and

    2. (b)

      in relation to an overseas firm in (7)(b) and (8)(b), the total assets of the overseas firm as set out in its balance sheet on the relevant accounting reference date that cover the activities of the branch operation in the United Kingdom.

High Earners Reporting Requirements

SUP 16.17.4R
  1. (1)

    A firm to which this rule applies must submit a High Earners Report to the FCA4 annually.

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  2. (2)

    The firm must submit that report to the FCA4 within four months of the end of the firm's accounting reference date.

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  3. (3)

    A firm that is not part of a UK lead regulated group must complete that report on an unconsolidated basis in respect of remuneration awarded in the last completed financial year to all high earners of the firm who mainly undertook their professional activities within the EEA.

  4. (4)

    A firm that is part of a UK lead regulated group must not complete that report on either a solo consolidation basis or an unconsolidated basis. The firm must complete that report on a consolidated basis in respect of remuneration awarded in the last completed financial year to all high earners who mainly undertook their professional activities within the EEA at:

    1. (a)

      the EEA parent institution,4 EEA parent financial holding company or EEA parent mixed financial holding company 4of the UK lead regulated group; and

    2. (b)

      each subsidiary of the UK lead regulated group that has its registered office (or, if it has no registered office, its head office) in an EEA State; and

    3. (c)

      each branch of the UK lead regulated group that is established or operating in an EEA State.

  5. (5) 4
    1. (a)

      The firm must complete a separate template, in the format set out in SUP 16 Annex 34A, for each EEA State in which there is a high earner, and for each payment bracket of EUR 1 million. Those templates together form the High Earners Report.4

    2. (b)

      The number of high earners must be reported as the number of natural persons, independent of the number of working hours on which their contract is based.4

  6. (6)

    [deleted]

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  7. (7)

    [deleted]

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  8. (8)

    [deleted]2

    2
  9. (9)

    The information in the High Earners Report4must be denominated in euros determined, if necessary, by reference to the exchange rate used by the European Commission for financial programming and the budget for December of the reported year4.

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  10. (10)

    This rule applies to an IFPRU investment firm4 that is not, and does not have, an EEA parent institution, an EEA parent financial holding company or an EEA parent mixed financial holding company.4

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  11. (11)

    This rule also applies to an IFPRU investment firm4that part of a UK lead regulated group.4

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  12. (12)

    This rule also applies to a BIPRU firm, an exempt CAD firm, a local, or any other firm that is not a bank, a building society or an IFPRU investment firm:4

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    1. (a)

      that is part of a UK lead regulated group; and

    2. (b)

      where that UK lead regulated group contains either:2

      2
      1. (i)

        a bank, building society or an IFPRU investment firm4; or2

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      2. (ii)

        an overseas firm that;2

        1. (A)

          is not an EEA firm;2

        2. (B)

          has its head office outside the EEA; and2

        3. (C)

          would be a bank, building society or an IFPRU investment firm4, if it had been a UK domestic firm, had carried on all of its business in the UK and had obtained whatever authorisations for doing so as are required under the Act.2

          4
  13. (13)

    This rule also applies to an overseas firm that:2

    1. (a)

      is not an EEA firm;2

    2. (b)

      has its head office outside the EEA;2

    3. (c)

      would bean IFPRU investment firm,4 if it had been a UK domestic firm, had carried on all of its business in the UK and had obtained whatever authorisations for doing so as are required under the Act;42

      4

    and either:

    1. (d)

      is not, and does not have, an EEA parent institution ,4an EEA parent financial holding company or an EEA parent mixed financial holding company4; or2

      4
    2. (e)

      is part of a UK lead regulated group.2

SUP 16.17.5G

Firms' attention is drawn to SUP 16.3.25 G regarding a single submission for all firms in a group.