The European Banking Authority launches today a consultation paper on draft Regulatory Technical Standards (RTS) on criteria to identify categories of staff whose professional activities have a material impact on an institution’s risk profile. These material risk takers will be subject to specific provisions of the Capital Requirements Directive (CRD) related, in particular, to the payment of variable remuneration. The consultation runs until 21 August.

The EBA proposes an identification process based on a combination of standard qualitative and quantitative criteria and internal criteria developed by the institutions. The objective of this combined approach is to ensure an appropriate harmonisation and level playing field across the EU while taking into account each institution’s risk profile.

Read Full EBA Press Release.

Read Consultation Document.