{"id":"circulars/cssf-23-836","title":"Circular CSSF 23/836","type":"circular","date":"2023-05-25","kind":"circular","html":"

Circular CSSF 23/836 is a CSSF circular, published 25 May 2023 and updated 26 May 2023. Subject: Application of the Guidelines of the European Banking Authority (“EBA”) on the benchmarking exercises on remuneration practices, the gender pay gap and approved higher ratios under Directive 2013/36/EU (EBA/GL/2022/06).

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Relevant for: Credit institutions, Investment firms.

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Keywords: Remuneration.

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Text

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the

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Guidelines of the European Banking

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Authority

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the

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benchmarking exercises on remuneration practices, the gender approved

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pay

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gap

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higher

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and ratios

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under Directive 2013/36/EU (EBA/GL/2022/06)

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Circular CSSF 23/836 Re: Application of the Guidelines of the European Banking Authority (“EBA”) on the benchmarking exercises on remuneration practices, the gender pay gap and approved higher ratios under Directive 2013/36/EU (EBA/GL/2022/06)

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Ladies and Gentlemen,

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Luxembourg, 25 May 2023

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The purpose of this circular is to inform you that the CSSF, in its capacity as To all credit institutions, as defined in point (12) of Article 1 of the amended Law of 5 April 1993 on the financial sector (“LFS”), and all CRR investment firms, as defined in point (9a) of

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competent authority, applies the EBA Guidelines on the benchmarking exercises on remuneration practices, the gender pay gap and approved higher ratios under Directive 2013/36/EU (EBA/GL/2022/06) (the “Guidelines”), published on 30 June 2022. Consequently, the CSSF has integrated the Guidelines into its administrative practice and regulatory approach with a view to promoting supervisory convergence in this field at European level. All credit institutions, as defined in point (12) of Article 1 of the amended Law

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Article 1 of the LFS

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of 5 April 1993 on the financial sector (“LFS”), and all CRR investment firms, as defined in point (9a) of Article 1 of the LFS shall duly comply with them.

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The Guidelines The Guidelines are issued by the EBA in accordance with Article 75 of the amended Directive 2013/36/EU 1. The Guidelines apply as from 31 December 2022. These Guidelines specify, for the purposes of the oversight of remuneration policies, the information to be provided by selected institutions to the CSSF, namely: -

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data for benchmarking remuneration trends and practices, including information disclosed in accordance with the criteria for disclosure established in points (g), (h), (i) and (k) of Article 450(1) of the amended Regulation (EU) No 575/2013 2 (“remuneration data”), to be provided annually;

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data for benchmarking the gender pay gap (“gender pay gap data”), to be provided every three years (starting from 2024 for the financial year 2023).

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Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338) 2

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Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.06.2013, p.1)

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Institutions are selected by the CSSF based on the criteria specified in section 1.1 of the Guidelines for the remuneration data and section 1.2 for the gender pay gap data. These Guidelines also specify, in accordance with the sixth indent of point (ii) of Article 94 (1) (g) of Directive 2013/36/EU, the common reporting format to be used for the purposes of the benchmarking of approved higher ratios between the fixed and variable components of remuneration (“higher ratios data”) to be submitted every two years (starting from 2023 with regard to the financial year 2022) by the institutions falling under the scope of this circular, in accordance with paragraph 19 of the Guidelines. These Guidelines specify how the CSSF will collect the higher ratios data, the remuneration data and the gender pay gap data (collectively referred to as “benchmarking data”) from institutions, and how the CSSF will submit the benchmarking data to the EBA. Furthermore, the Guidelines repeal the EBA Guidelines on the remuneration benchmarking exercise (EBA/GL/2014/08).

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The text above is the opening of the document; the PDF carries the whole.

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Document page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.

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