Cyprus Investment Firms (CIFs) are informed through CySEC Circular C576 about the incorporation and enforcement of two crucial sets of guidelines issued by the European Banking Authority (EBA). The circular underscores the significance of these guidelines, elucidates their content, and emphasizes the imperative of compliance.
EBA Guidelines on Benchmarking Remuneration Practices and Gender Pay Gap
Under the umbrella of Directive (EU) 2019/2034, the EBA has released comprehensive guidelines (EBA/GL/2022/07) pertaining to benchmarking exercises on remuneration practices and the gender pay gap. These guidelines align with CySEC’s supervisory approach outlined in the Prudential Supervision of Investment Firms Law of 2021. Specifically, they apply to CIFs whose initial capital requirements range between €150,000 and €750,000.
Guidelines on Data Collection Exercises Regarding High Earners
Furthermore, the EBA has issued guidelines (EBA/GL/2022/08) that focus on data collection exercises concerning high earners as delineated in Directives 2013/36/EU and 2019/2034. These guidelines mandate CIFs to furnish data regarding personnel earning at least €1 million within the financial year. The objective is to facilitate analysis of year-to-year fluctuations in the number of high earners and the structure of their remuneration, thereby enriching the comprehension and enhancement of remuneration frameworks.
- To fully comprehend the benchmarking exercises, a harmonious reading of these guidelines with the EBA’s directives on sound remuneration policies is imperative.
- CySEC, in accordance with the Prudential Supervision of Investment Firms Law of 2021, will collate the disclosed data on gender pay gap and remuneration from CIFs. This collected data will be utilized to benchmark practices and trends.
- CIFs are mandated to submit comprehensive remuneration and gender pay gap data to CySEC by specific deadlines.
- The data collection focusing on high earners serves the dual purpose of analyzing year-to-year trends and contributing to the refinement of remuneration frameworks.
- Annually, CIFs must report high earners’ data, reflecting a commitment to transparency and regulatory adherence.
- The submission of data is exclusively through CySEC’s Xbrl Portal. A revamp of this portal is expected to be finalized by June 30, 2023.
- The pivotal takeaway is that CIFs should internalize these guidelines, promptly initiate necessary actions for compliance, and demonstrate adherence.
- In conjunction with its commitment to fostering transparency and alignment with European directives, CySEC is steadfast in its efforts to ensure the compliance of CIFs with these significant guidelines. CIFs are urged to meticulously review the circular and relevant EBA guidelines to ensure their organizations’ adherence and timely data submissions.
- CIFs must submit remuneration and gender pay gap data for the financial year ending in 2022 to CySEC by August 31, 2023.
- Subsequent to 2023, CIFs should submit gender pay data by June 15 every three years, starting from 2024.
- For high earners’ data, CIFs must annually report for any given financial year by June 15 of the subsequent calendar year.
- This proactive approach to regulatory compliance is an integral facet of CIFs’ responsibilities within the investment sector.
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