JUSTICE AND CONSUMERS - EU rules on remuneration for banks and investment firms work, but the proportionality principle needs to be clarified

The European Commission released today a report on the remuneration rules for banks and investment firms. It finds that the remuneration rules are generally effective in curbing excessive risk-taking behaviour and short-termism. These were precisely the reasons why the rules were introduced in the aftermath of the financial crisis.

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Civil Justice Justice and Consumers

date: 28/07/2016

The Report concludes that, in certain cases, some of the rules may be too costly and burdensome to apply, as compared to their prudential benefits. This is in particular the case when the rules on deferral and pay-out in instruments are applied in small and non-complex institutions or to staff with low levels of variable remuneration.

More information:

Commission Report on the assessment of remuneration rules(501 kB) under CRD/CRR (July 2016)
Press release

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