{"id":"circulars/cssf-23-838","title":"Circular CSSF 23/838","type":"circular","date":"2023-05-25","kind":"circular","html":"

Circular CSSF 23/838 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 and the gender pay gap under Directive (EU) 2019/2034 (EBA/GL/2022/07).

\n

Relevant for: Investment firms.

\n

Keywords: Remuneration.

\n

Text

\n

the

\n

Guidelines of the European Banking

\n

Authority

\n

the

\n

benchmarking exercises on remuneration practices and the gender pay gap under Directive

\n

(EU)

\n

(EBA/GL/2022/07)

\n

Circular CSSF 23/838 Re: Application of the Guidelines of the European Banking Authority (“EBA”) on the benchmarking exercises on remuneration practices and the gender pay gap under Directive (EU) 2019/2034 (EBA/GL/2022/07)

\n

Ladies and Gentlemen,

\n

Luxembourg, 25 May 2023

\n

The purpose of this circular is to inform you that the CSSF, in its capacity as To all non-SNI IFR

\n

competent authority, applies the EBA Guidelines on the benchmarking exercises

\n

investment firms, as defined

\n

on remuneration practices and the gender pay gap under Directive (EU)

\n

in point (9a-2) of Article 1 of

\n

2019/2034 (EBA/GL/2022/07) (the “Guidelines”), published on 30 June 2022.

\n

the amended Law of 5 April

\n

Consequently, the CSSF has integrated the Guidelines into its administrative

\n

1993 on the financial sector

\n

practice and regulatory approach with a view to promoting supervisory

\n

(“LFS”)

\n

convergence in this field at European level. All non-SNI IFR investment firms, as defined in point (9a-2) of Article 1 of the amended Law of 5 April 1993 on the financial sector (“LFS”) shall duly comply with them.

\n

The Guidelines The Guidelines are issued by the EBA in accordance with Article 34 of Directive (EU) 2019/2034 1. These Guidelines specify, for the purposes of the oversight of remuneration policies, the information to be provided by selected non-SNI IFR investment firms to the CSSF, namely: -

\n

data for benchmarking remuneration trends and practices, including information disclosed in accordance with points (c) and (d) of the first subparagraph of Article 51 of Regulation (EU) 2019/2033 2 (“remuneration data”), to be provided annually;

\n

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).

\n

Institutions are selected by the CSSF based on the criteria specified in section 1 of the Guidelines for the remuneration data and section 2 for the gender pay gap data.

\n

1 Directive (EU) 2019/2034 of the European Parliament and of the Council of 27 November 2019 on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU (OJ L 314, 05.12.2019, p.64) 2

\n

Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014

\n

The Guidelines also specify how the CSSF will collect the remuneration data and the gender pay gap data (collectively referred to as “benchmarking data”) from the non-SNI IFR investment firms, and how the CSSF will submit the benchmarking data to the EBA. The Guidelines are attached to this circular and are available on the EBA’s https://www.eba.europa.eu/regulation-and-

\n

website

\n

policy/remuneration/guidelines-remuneration-and-gender-pay-gapbenchmarking-exercises-under-ifd

\n

Scope of application This circular shall apply to all non-SNI IFR investment firms, as defined in point (9a-2) of Article 1 of the LFS. Gender pay gap data will be collected at the individual level. Remuneration data will be collected at the individual level if Article 7 of Regulation (EU) 2019/2033 (IFR) does not apply. Where Article 7 of the IFR does apply, remuneration data will be collected at the level of consolidation set out in the article.

\n

Date of application This circular shall apply as from the date of its publication.

\n

Annex:

\n

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

\n

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

"}