Data collection on remuneration practices
Chapters 17 and 18 of the Remuneration Part of the PRA Rulebook set out the remuneration data reporting requirements. We are required by the Capital Requirements Directive to collect information on:
- remuneration benchmarking; and
- high earners
Firms are required to submit their Benchmarking Report and High Earners Report via the regulatory reporting system RegData.
Guidance on how to report data can be found in:
Note on submitting COR015 Remuneration High Earners
On 15 December 2021, the PRA issued a statement on COR015 'Remuneration High earners' which can be found in the guidance on changes to banking reporting requirements. The guidance indicated that firms with a year-end date on/after Saturday 1 January 2022 are expected to submit the XBRL reportable template Remuneration High Earners. This remains valid for future performance years.
It has come to our attention that not all firms are aware of the change.
We ask all firms with high earners to make the necessary arrangements to acquire an XBRL licence and hence comply with the reporting requirements.
We ask all firms with no high earners (i.e. a nil return) that have already purchased XBRL to report via the system. This is the PRA preferred solution.
However, it is our desire to adopt a proportionate approach, hence although we encourage firms with no high earners that have not purchased XBRL yet to acquire it, we may also accept email submissions. Please email Remuneration@bankofengland.co.uk, copying your remuneration supervisory contact to confirm a nil return with subject line ‘high earners – nil return – [firm name + FRN]’. Please specify whether you are reporting on an individual or group basis, and if the latter please list all sub-entities in the body of the email.
When filling in the templates, please follow closely the requirements presented in Chapter 18 of the Remuneration Part of the PRA Rulebook.
Remuneration requirements for insurance
On 1 January 2016, the remuneration requirements in the Solvency II Regulation became directly applicable to Solvency II firms. National competent authorities are expected to ensure that Solvency II firms are compliant. We intend to monitor compliance with the regulatory requirements in the same way that we do for PRA rules.
Solvency II: Remuneration requirements - Supervisory Statement 10/16 clarifies our expectations of how Solvency II firms should comply with the key Solvency II remuneration requirements such as identification of Solvency II staff (Article 275(1)(d)), deferral (Article 275(2)(c)), and performance measurement (Article 275(2)(b), (d) and (e)).
On 9 May 2019 we published an updated Remuneration Policy Statement (RPS) reporting template for PRA Category 1 and 2 firms for the 2018 performance year for Category 1 and 2 firms to demonstrate compliance with the requirements, together with the Solvency II staff table. Firms in scope have been asked to submit a copy of their RPS for their most recent reporting period to BEEDS as an Occasional Submission by 31 July 2019.
For the 2021 performance year, firms are not required to submit a copy of their Remuneration Policy Statement. However as per SS10/16 ‘Solvency II: Remuneration requirements’, firms are reminded that the PRA expects firms to keep a record of their assessment criteria applied and the final list of staff identified as Solvency II staff for each performance year.
