SUP 16 Annex 33B Guidance notes for data items in SUP 16 Annex 33AR

G
  1. (1) Financial year for which the remuneration is awarded

    A firm's financial year should be designated by reference to the calendar year in which it ends. For example, if a firm's accounting reference date is 31 March 2013, the financial year that begins on 1 April 2013 and ends on 31 March 2014 will be the firm's 2014 financial year.

  2. (2) Consolidation

    When reporting on a consolidated basis as a UK lead regulated group, firms should where possible treat the consolidation group as a single entity (i.e. line-by-line) rather than on an aggregation basis.

  3. (3) Reference year of data collected and currency conversion

    1. (a) See SUP 16.17.3R (5) which provides that firms must report in euros. To convert into euros, firms must use the rates published by the European Commission for financial programming and budget for December of the reported year. The table is published on the European Commission’s website: http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/index_en.cfm 3.

      The table contains monthly exchange rates. A list sorted by country name can be generated using the ‘access by list of countries’ function. Institutions should use the exchange rate applicable for the month in which the financial year ended.

      Figures should be reported in full amounts.

    2. (b) Data should comprise both fixed and variable remuneration awarded for performance during the performance year preceding the year of submission of the information.

    3. (c) Remuneration awarded based on multi-year accrual periods that do not revolve on an annual basis, i.e. where institutions do not start a new multi-year period every year, should be fully allocated to the performance year in which the remuneration was awarded, without consideration of the point in time when the variable remuneration is effectively paid. These amounts should be reported separately to allow a further analysis of fluctuations of the variable remuneration and should not be deducted from the amount of variable remuneration reported.

    4. (d) The information to be provided on ex-post adjustments (which adjusts remuneration for crystallisation of specific risks events), including clawback and malus, refers to the application of these arrangements for remuneration already awarded. These amounts should be reported separately and should not be deducted from the amount of variable remuneration reported.

    5. (e) Only the amounts of variable remuneration awarded in the performance year should be reported as deferred. Deferred variable remuneration for previous periods that has not yet vested should be reported separately.

    6. (f) Where numbers should be reported in terms of the headcount, the number of natural persons should be entered, independent of the number of working hours on which their contract is based. Where numbers should be reported in terms of the full-time equivalent, the number should be based on the percentage of time that a staff member is employed compared to a full-time contract.

    7. (g) Staff should be classified under the function or business area where they carry out the predominant part of their business activities. The full amount of their remuneration awarded to that staff member within the group or institution should be reported under this function or business area.

  4. (4) Data elements

    These are referred to by row first and then by column, so data element 2B will be in row 2 and column B.

  5. (5) Definitions

    For the purpose of completing the form in SUP 16 Annex 33A, the following terms are defined:

    Term

    Definition

    MB Supervisory Function

    Members of the management body in its supervisory function; this includes non-executive directors of any board in the scope of consolidation.

    MB Management Function

    Members of the management body in its management function who have executive functions within the management body; this includes all executive directors of any board in the scope of consolidation.

    Investment Banking

    Include corporate finance advice services, private equity, capital markets, trading and sales.

    Retail Banking

    Include total lending activity (to individuals and enterprises).

    Asset Management

    Include portfolio management, managing of UCITS and other forms of asset management.

    Corporate Functions

    All functions that have responsibilities for the whole institution at the consolidated level and for subsidiaries with such functions at the solo level, e.g. Human Resources, IT.

    Independent Control Functions

    Staff active in the independent risk management, compliance and internal audit functions as described in the EBA’s guidelines on internal governance. Such reporting requirements should apply to these functions at the consolidated level and for subsidiaries with such functions at the solo level.

    All Other

    This column should include staff that cannot be allocated to one of the designated business areas.

    Senior management

    As defined in the Glossary, that is those persons who are a natural person and who exercise executive functions in an institution and who are responsible and accountable to the management body for the day-to-day management of the institution.

    Control Functions

    Control functions comprise control functions within the business units and the independent compliance, risk control and internal audit function.

    Identified Staff

    Staff whose professional activities have a material impact on the firm's risk profile in accordance with Regulation (EU) 604/2014 (Regulatory technical standards to identify staff who are material risk takers). For data relating to the performance year 2013, identified staff are those whose professional activities have a material impact on the firm's risk profile in accordance with SYSC 19A.3.4 R.

    Fixed remuneration

    Fixed remuneration includes payments, proportionate regular (non-discretionary) pension contributions or benefits (where they are without consideration of any performance criteria).

    Variable remuneration

    Variable remuneration includes additional payments or benefits depending on performance or, in exceptional circumstances, other contractual elements but not those which form part of routine employment packages (such as healthcare, childcare facilities or proportionate regular pension contributions). Both monetary and non-monetary benefits should be included. Amounts should be reported gross, without any reduction due to the application of the discount rate for variable remuneration for the categories of total variable remuneration, variable in cash, variable in shares and share-linked instruments, and variable in other types of instruments.

    Variable remuneration in other types of instruments which has been deferred

    Cash and instruments in accordance with Commission Delegated Regulation (EU) No 527/2014 (Regulatory technical standards specifying the classes of instruments that adequately reflect the credit quality of a firm as a going concern and are appropriate to be used for the purposes of variable remuneration).

    Deferred variable remuneration in other types of instrument

    Instruments in accordance with Commission Delegated Regulation (EU) No 527/2014 (Regulatory technical standards specifying the classes of instruments that adequately reflect the credit quality of a firm as a going concern and are appropriate to be used for the purposes of variable remuneration).

    Deferred remuneration

    Should be determined with reference to SYSC 19A.3.49 R. Amounts should be reported gross, without any reduction due to the application of the discount rate for deferred variable remuneration for the categories of total deferred variable remuneration, deferred variable in cash, deferred variable in shares and share-linked instruments, and deferred variable in other types of instruments.

    Discretionary pension benefits

    As defined in the Glossary with reference to article 4(1)(73) of the EU CRR, which means enhanced pension benefits granted on a discretionary basis by a firm to an employee as part of that employee's variable remuneration package, which do not include accrued benefits granted to an employee under the terms of the company pension scheme.

  6. (6) Specific guidance on data fields

    Field

    Guidance

    Information on remuneration of identified staff

    3B-I

    Number of staff

    The number of staff should be reported as a headcount figure and be based on year end numbers.

    4C-I

    Total number of staff

    The total number of staff should be expressed in full time equivalents (FTE) and be based on year end numbers.

    6B-I

    Total remuneration

    The total remuneration figure (fixed and variable) awarded in the remuneration year expressed per function.

    7B-I

    Variable remuneration

    The total variable remuneration awarded in the remuneration year expressed per function.

    Business Areas

    8B-C

    Members of management body

    The number of management body members should be reported as a headcount figure and be based on year end numbers.

    9D-I

    Number of identified staff

    The total number of staff should be expressed in full time equivalents (FTE) and be based on year end numbers.

    10D-I

    Number of identified staff in senior management positions

    The number of identified staff in senior management positions should be reported as a headcount figure and be based on year end numbers.

    11B-18I

    Fixed remuneration

    Variable remuneration

    Deferred fixed and variable remuneration should not be included in these fields.

    19B-22I

    Deferred remuneration

    Includes deferred variable remuneration.

    Additional information regarding the amount of total variable remuneration

    23B-I

    Total amount of outstanding deferred variable remuneration

    This position includes the deferred variable remuneration which was awarded in previous periods and which has not yet vested. Amounts should be reported gross, without any reduction due to the application of the discount rate for deferred variable remuneration.

    24B-I

    Total amount of explicit ex post performance adjustments applied in year

    Expressed as a monetary value. Explicit ex post performance adjustment in accordance with SYSC 19A.3.51 R and SYSC 19A.3.51A R.

    25B-I

    Number of beneficiaries of guaranteed variable remuneration (new sign-on payments)

    Expressed as number of individuals.

    26B-I

    Total amount of guaranteed variable remuneration (new sign-on payments)

    Expressed as a monetary value. Guaranteed variable remuneration in accordance with SYSC 19A.3.40 R.

    28B-I

    Severance payments

    The total monetary value of severance payments in the financial year.

    30B-I

    Number of beneficiaries

    The total number of beneficiaries expressed as individuals.

    31B-I

    Total amount of contributions to discretionary pension benefits in year

    The total amount of contributions should be provided in euros.

    32B-I

    Variable remuneration for multi-year periods which are not revolved annually

    See Guidance note (3)(c).

    2

    Information on identified staff remunerated EUR 1 million or more in year

    33A-XC2

    Total remuneration payment band

    The number of identified staff within each pay bracket should be expressed in headcount figures. Further brackets should be added in ranges of EUR 1 million where needed.