The IFD/IFR: Getting to Grips with the New Remuneration Rules for Investment Firms

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The Investment Firms Directive ((EU) 2019/2034) and Investment Firms Regulation (EU) 2019/2033 (IFD/IFR) take effect from 26 June 2021 and will establish a new, tailored prudential regime for MiFID investment firms.

In this briefing, we focus on the new remuneration regime under the IFD/IFR and how it will impact investment firms depending on their IFD/IFR categorisation.

Many MiFID investment firms will already be subject to, and therefore familiar with, the remuneration rules under the Capital Requirements Directive (as implemented in Ireland by the European Union (Capital Requirements) Regulations 2014)  which provide the foundation blocks for the IFD remuneration rules.  However, the IFD remuneration requirements are likely to capture investment firms not previously in scope of CRD remuneration rules.  In addition, these new requirements alter, and have the potential to be more onerous than, the requirements currently applicable to the majority of CRD investment firms. 

Click in to our briefing to read more on:

  • when the new remuneration requirements will apply;
  • who will be subject to the IFD/IFR framework; and
  • key elements of the IFD/IFR framework including remuneration policy and remuneration committee requirements, as well as requirements relating to disclosures and reporting, variable remuneration and the classification of 'risk takers'.

Article supplied by William Fry