CSSF adopts EBA Guidelines on sound remuneration

Through Circular 22/797 of 31 January 2022, the CSSF indicates applying the Guidelines of the European Banking Authority ("EBA") on sound remuneration policies under Directive 2013/36/EU (EBA/GL/2021/04) ("Guidelines"), published on 2 July 2021. All credit institutions and all CRR investment firms must comply with them. Circulars 17/658 and 11/505 relating to the same topic are repealed. In essence, the Guidelines cover both remuneration policies for all staff as part of institutions’ internal governance arrangements and remuneration policies for identified staff, i.e. staff whose professional activities have a material impact on the institutions’ risk profile. Remuneration policies must notably be gender neutral and respect the principle of equal pay for male and female workers for equal work or work of equal value.