What changed, Commission Delegated Regulation (EU) No 604/2014 of 4 March 2014 supplementing Directive 2013/36/EU

+ ### Article 1 — Subject matter and scope
− ### art_1
− 
− Article 1
+ ### Article 2 — Application of the criteria
− ### art_2
− 
− Article 2
+ ### Article 3 — Qualitative criteria
− ### art_3
− 
− Article 3
+ (1) the staff member is a member of the management body in its management function;
− | (1) | the staff member is a member of the management body in its management function; |
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+ (2) the staff member is a member of the management body in its supervisory function;
− | (2) | the staff member is a member of the management body in its supervisory function; |
− | --- | --- |
+ (3) the staff member is a member of the senior management;
− | (3) | the staff member is a member of the senior management; |
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+ (4) the staff member is responsible and accountable to the management body for the activities of the independent risk management function, compliance function or internal audit function;
− | (4) | the staff member is responsible and accountable to the management body for the activities of the independent risk management function, compliance function or internal audit function; |
− | --- | --- |
+ (5) the staff member has overall responsibility for risk management within a business unit as defined in Article 142(1)(3) of Regulation (EU) No 575/2013 which has had internal capital distributed to it in accordance with Article 73 of Directive 2013/36/EU that represents at least 2 % of the interna…
− | (5) | the staff member has overall responsibility for risk management within a business unit as defined in Article 142(1)(3) of Regulation (EU) No 575/2013 which has had internal capital distributed to it in accordance with Article 73 of Directive 2013/36/EU that represents at least 2 % of the int…
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+ (6) the staff member heads a material business unit;
− | (6) | the staff member heads a material business unit; |
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+ (7) the staff member has managerial responsibility in one of the functions referred to in point (4) or in a material business unit and reports directly to a staff member identified pursuant to point (4) or (5);
− | (7) | the staff member has managerial responsibility in one of the functions referred to in point (4) or in a material business unit and reports directly to a staff member identified pursuant to point (4) or (5); |
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+ (8) the staff member has managerial responsibility in a material business unit and reports directly to the staff member who heads that unit;
− | (8) | the staff member has managerial responsibility in a material business unit and reports directly to the staff member who heads that unit; |
− | --- | --- |
+ (9) the staff member heads a function responsible for legal affairs, finance including taxation and budgeting, human resources, remuneration policy, information technology, or economic analysis;
− | (9) | the staff member heads a function responsible for legal affairs, finance including taxation and budgeting, human resources, remuneration policy, information technology, or economic analysis; |
− | --- | --- |
+ (10) the staff member is responsible for, or is a member of, a committee responsible for the management of a risk category provided for in Articles 79 to 87 of Directive 2013/36/EU other than credit risk and market risk;
− | (10) | the staff member is responsible for, or is a member of, a committee responsible for the management of a risk category provided for in Articles 79 to 87 of Directive 2013/36/EU other than credit risk and market risk; |
− | --- | --- |
+ (11) with regard to credit risk exposures of a nominal amount per transaction which represents 0.5 % of the institution's Common Equity Tier 1 capital and is at least EUR 5 million, the staff member: (a) is responsible for initiating credit proposals, or structuring credit products, which can result…
− | (11) | with regard to credit risk exposures of a nominal amount per transaction which represents 0.5 % of the institution's Common Equity Tier 1 capital and is at least EUR 5 million, the staff member:(a)is responsible for initiating credit proposals, or structuring credit products, which can resu…
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− | (a) | is responsible for initiating credit proposals, or structuring credit products, which can result in such credit risk exposures; or |
− | (b) | has authority to take, approve or veto a decision on such credit risk exposures; or |
− | (c) | is a member of a committee which has authority to take the decisions referred to in point (a) or (b); |
+ (12) in relation to an institution to which the derogation for small trading book business provided for in Article 94 of Regulation (EU) No 575/2013 does not apply, the staff member: (a) has authority to take, approve or veto a decision on transactions on the trading book which in aggregate meet one…
− | (12) | in relation to an institution to which the derogation for small trading book business provided for in Article 94 of Regulation (EU) No 575/2013 does not apply, the staff member:(a)has authority to take, approve or veto a decision on transactions on the trading book which in aggregate meet o…
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− | (a) | has authority to take, approve or veto a decision on transactions on the trading book which in aggregate meet one of the following thresholds:(i)where the standardised approach is used, an own funds requirement for market risks which represents 0.5 % or more of the institution's Common Equit…
− | (i) | where the standardised approach is used, an own funds requirement for market risks which represents 0.5 % or more of the institution's Common Equity Tier 1 capital; or |
− | (ii) | where an internal model-based approach is approved for regulatory purposes, 5 % or more of the institution's internal value-at-risk limit for trading book exposures at a 99th percentile (one-tailed confidence interval); or |
− | (b) | is a member of a committee which has authority to take decisions set out in point (a); |
+ (13) the staff member has managerial responsibility for a group of staff members who have individual authorities to commit the institution to transactions and either of the following conditions is met: (a) the sum of those authorities equals or exceeds a threshold set out in point 11(a), point 11(b)…
− | (13) | the staff member has managerial responsibility for a group of staff members who have individual authorities to commit the institution to transactions and either of the following conditions is met:(a)the sum of those authorities equals or exceeds a threshold set out in point 11(a), point 11(…
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− | (a) | the sum of those authorities equals or exceeds a threshold set out in point 11(a), point 11(b) or point 12(a)(i); |
− | (b) | where an internal model-based approach is approved for regulatory purposes those authorities amount to 5 % or more of the institution's internal value-at-risk limit for trading book exposures at a 99th percentile (one-tailed confidence interval). Where the institution does not calculate a va…
+ (14) with regard to decisions to approve or veto the introduction of new products, the staff member: (a) has the authority to take such decisions; or (b) is a member of a committee which has authority to take such decisions;
− | (14) | with regard to decisions to approve or veto the introduction of new products, the staff member:(a)has the authority to take such decisions; or(b)is a member of a committee which has authority to take such decisions; |
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− | (a) | has the authority to take such decisions; or |
− | (b) | is a member of a committee which has authority to take such decisions; |
+ (15) the staff member has managerial responsibility for a staff member who meets one of the criteria set out in points (1) to (14).
− | (15) | the staff member has managerial responsibility for a staff member who meets one of the criteria set out in points (1) to (14). |
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+ ### Article 4 — Quantitative criteria
− ### art_4
− Article 4
− 
+ (a) the staff member has been awarded total remuneration of EUR 500 000 or more in the preceding financial year;
− | (a) | the staff member has been awarded total remuneration of EUR 500 000 or more in the preceding financial year; |
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+ (b) the staff member is within the 0.3 % of the number of staff, rounded up to the next integer, who have been awarded the highest total remuneration in the preceding financial year;
− | (b) | the staff member is within the 0.3 % of the number of staff, rounded up to the next integer, who have been awarded the highest total remuneration in the preceding financial year; |
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+ (c) the staff member was in the preceding financial year awarded total remuneration that is equal to or greater than the lowest total remuneration awarded in that financial year to a member of senior management or to a member of staff who meets any of the criteria in points (1), (5), (6), (8), (11),…
− | (c) | the staff member was in the preceding financial year awarded total remuneration that is equal to or greater than the lowest total remuneration awarded in that financial year to a member of senior management or meets any of the criteria in points (1), (3), (5), (6), (8), (11), (12), (13) or (…
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+ (a) only carries out professional activities and has authorities in a business unit which is not a material business unit; or
− | (a) | only carries out professional activities and has authorities in a business unit which is not a material business unit; or |
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+ (b) has no material impact on the risk profile of a material business unit through the professional activities carried out.
− | (b) | has no material impact on the risk profile of a material business unit through the professional activities carried out. |
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+ ### Article 5 — Calculation of remuneration awarded
− ### art_5
− 
− Article 5
+ ### Article 6 — Entry into force
− ### art_6
+ This Regulation shall enter into force on the twentieth day following that of its publication in the *Official Journal of the European Union*.
− Article 6
+ This Regulation shall be binding in its entirety and directly applicable in all Member States.
− This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.