Title III: Investment services providers

The remuneration policy of investment firms applies to categories of staff, in particular the persons mentioned in Article L. 533-25, risk-takers and any employee receiving total remuneration at least equal to the lowest remuneration received by the person mentioned in 1° or 2° of Article L. 533-25 or the risk-takers, whose professional activities have a significant impact on the risk profile of the investment firm or the assets it manages….

The board of directors, the supervisory board or any other body exercising equivalent supervisory functions adopts and regularly reviews the remuneration policy and assumes overall responsibility for supervising its implementation. In the case of a branch of a third-country undertaking mentioned in Article L. 532-48 and where the third-country undertaking is an investment firm, the persons mentioned in 4° of II of Article L. 532-48 transmit to the body of…

The implementation of the remuneration policy is subject, at least once a year, to a central and independent internal assessment in the exercise of supervisory functions. In the branches of third-country undertakings referred to in Article L. 532-48 and where the third-country undertaking is an investment firm, the implementation of the remuneration policy is subject, at least once a year, to a central and independent internal assessment in the exercise…

Staff performing control functions are independent of the business units they supervise, have the necessary authority and are remunerated on the basis of the achievement of objectives related to their duties, independently of the performance of the business areas they control.

The remuneration of senior executives in charge of risk management and compliance is directly supervised by the remuneration committee referred to in article L. 533-31-4 or, if no such committee has been set up, by the board of directors, the supervisory board or any other body exercising equivalent supervisory functions in the performance of its supervisory role.

The remuneration policy of investment firms makes a distinction, based on clear criteria, between basic fixed remuneration and variable remuneration. Basic fixed remuneration primarily reflects professional experience in relation to the position held and the responsibilities exercised as stipulated in the employment contract or mentioned in the job description. Variable remuneration reflects sustainable, risk-adjusted performance on the part of the employee. It also reflects performance that goes beyond the stipulations…