Section 8: Governance of credit institutions and finance companies

I.- In order to compare remuneration trends and practices, the Autorité de contrôle prudentiel et de résolution shall collect, under the conditions defined by order of the Minister responsible for the economy, the information referred to in g), h), i) and k) of paragraph 1 of Article 450 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 published by credit institutions, financial…

The information referred to in Article R. 511-18 as well as that concerning the results of the votes of the general meetings referred to in Article L. 511-78 shall be transmitted by the Autorité de contrôle prudentiel et de résolution to the European Banking Authority, with the exception of information concerning finance companies and parent undertakings of finance companies.

In the cases provided for in Article L. 511-78 where it is envisaged to increase the amount of the variable part of the total remuneration of the persons mentioned in Article L. 511-71 to an amount higher than that of the fixed remuneration, the draft resolutions to this effect submitted to the competent general meetings of credit institutions or finance companies shall mention the reasons justifying the draft resolution, the…

The presentation to the general meeting of the credit institution or finance company concerned of the draft resolutions mentioned in article R. 511-20 is governed by the rules of the French Commercial Code. In cases where the provisions of this code do not apply, the period between the presentation of the draft decision, including the information mentioned in article R. 511-20, and the decision of the competent body may not…

The other convertible instruments referred to in Article L. 511-81 that may be used for the allocation of variable remuneration are the only instruments that may be fully converted into Tier 1 core capital instruments as defined by Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013.

Credit institutions and finance companies shall require the instruments referred to in Article L. 511-81 to be held for a minimum period defined under the conditions set out in Article L. 511-72 in order to protect the long-term interests of the credit institution or finance company referred to in Article L. 511-71.

For the application of article L. 511-84, the conduct likely to result in the reduction or restitution, in whole or in part, of the variable remuneration shall be defined by the credit institutions and finance companies in particular in consideration of the serious losses that they may cause to these institutions or companies. The decision to reduce or refund the variable remuneration referred to in the first paragraph of this…

The deferred instruments referred to in Article L. 511-79 are equity instruments, debt instruments or other instruments referred to in Article L. 511-81. Credit institutions and finance companies update the variable remuneration mentioned in article L. 511-79 according to the inflation rate and the risk incurred, which includes the duration of the deferment period. An order of the Minister for the Economy specifies the methods for calculating the discount rate.