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18 November 2014 Supervision Supervision label Q&A


All Identified Staff are subject to a stricter risk control regime. Differentiation between categories of identified staff is allowed, but the reasons for any such differentiation must be substantiated and transparent at all times, and the general terms and conditions for the proportional application of the Rbb must be complied with.


The reasons underpinning the proportional application of the Rbb to the various categories of identified staff are the same as those underpinning proportional of the Rbb on companies at large. The following additional reasons may be applied:

  • The seniority level of the relevant identified staff or category of identified staff employed by the company. Proportional application works both ways: the most senior staff should be subjected to a more rigorous regime than subordinates in view of their higher level of responsibility. For identified staff, a minimum of 60% of variable remuneration should be subject to an appropriate retention and deferral period.
  • The level of liabilities that the relevant category of identified staff are authorised to incur on behalf of the company, for instance transactions or deals that these staff members can sign off on without requiring prior permission.
  • The size of the group of identified staff whose collective activities materially affect the company's risk profile.
  • The business model of the company's activity to which the identified staff category belongs. The company may grant variable remuneration as a supplement to fixed income for one activity, say, whereas a profit-sharing scheme is in place in other parts of the company. In such cases, the company may conceivably apply different Rbb control instruments to this activity than to the others.
  • The fixed-to-variable remuneration ratio and/or total remuneration that a category of identified staff receives. If a selected category of identified staff cannot receive a variable remuneration of more than one monthly salary and an amount of no more than EUR 10,000, this category can be exempted from a more rigorous regime of control measures. Other identified staff are subject to the following rules:
    • If the variable remuneration relative to the fixed component increases, the applicable control measures should also be stricter. If the variable salary component for instance amounts to 150% of the fixed component, at least 50% of this should be deferred. If the variable salary component amounts to a maximum of 200% of the fixed component, at least 60% of this should be deferred.
    • If a selected category of identified staff are in the same remuneration bracket as the executive management, senior management and/or other risk takers in terms of variable remuneration, this group of identified staff should also be subjected to the same regime of control measures.

Relevant to:

  • Banks
  • Investment firms