CHAPTER III

OBLIGATIONS REGARDING MANAGEMENT COMPANIES
SECTION 3

Operating conditions
Article 14a
1
Member States shall require management companies to establish and apply remuneration policies and practices that are consistent with, and promote, sound and effective risk management and that neither encourage risk taking which is inconsistent with the risk profiles, rules or instruments of incorporation of the UCITS that they manage nor impair compliance with the management company’s duty to act in the best interest of the UCITS.
2
The remuneration policies and practices shall include fixed and variable components of salaries and discretionary pension benefits.
3
The remuneration policies and practices shall apply to those categories of staff, including senior management, risk takers, control functions and any employee receiving total remuneration that falls within the remuneration bracket of senior management and risk takers whose professional activities have a material impact on the risk profiles of the management companies or of the UCITS that they manage.
4
In accordance with Article 16 of Regulation (EU) No 1095/2010, ESMA shall issue guidelines addressed to competent authorities or to financial market participants concerning the persons referred to in paragraph 3 of this Article and the application of the principles referred to in Article 14b. Those guidelines shall take into account the principles on sound remuneration policies set out in Commission Recommendation 2009/384/EC
, the size of the management company and the size of the UCITS that they manage, their internal organisation, and the nature, scope and complexity of their activities. In the process of the development of those guidelines, ESMA shall cooperate closely with the European Supervisory Authority (European Banking Authority) (
‘
EBA
’
), established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council
, in order to ensure consistency with requirements developed for other financial services sectors, in particular credit institutions and investment firms.
Commission Recommendation 2009/384/EC of
30 April 2009
on remuneration policies in the financial services sector (
OJ L 120, 15.5.2009, p. 22
).
Regulation (EU) No 1093/2010 of the European Parliament and of the Council of
24 November 2010
establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (
OJ L 331, 15.12.2010, p. 12
).
Inserted by Directive 2014/91/EU of the European Parliament and of the Council of 23 July 2014 amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards depositary functions, remuneration policies and sanctions (Text with EEA relevance).