The rule in plain words
None of the values it checks in information on remuneration of staff whose professional activities have a material impact on institutions’ risk profile (identified staff) (I) can be negative.
EBA checks it for six columns: investment banking, retail banking, asset management, corporate functions, independent internal control functions and all other. And for three rows: total remuneration of identified staff, variable remuneration and fixed remuneration. That makes 18 checks. A failure names the one that failed.
How the Line4 Check report words itShowHide
The first of its checks, word for word as the report shows it when it fails. The others read the same, with their own column, row or sheet.
Investment banking: Of which: variable remuneration >= 0
What to do if your filing fails it
- 01Open the template below and find the cells the rule reads.
- 02Look for a value with the wrong sign in these cells, such as an amount entered as a negative number.
- 03EBA compares the values exactly here: there is no rounding tolerance.
- 04It runs only when your filing indicators mark R 12.00 as reported.
- 05This is a warning. It does not stop the filing on its own, but your authority may ask you to explain it.
The cells it reads
Rows
- 0050Total remuneration of identified staff
- 0060Of which: variable remuneration
- 0070Of which: fixed remuneration
Columns
- 0040Investment banking
- 0050Retail banking
- 0060Asset management
- 0070Corporate functions
- 0080Independent internal control functions
- 0090All other
A worked example
The first of its checks, with simple numbers.
Variable remuneration, investment banking must then be at least 0.
A file that reports 0 passes. One that reports -100 fails, by 100.
The numbers are illustrative.
Show the rule as writtenShowHide
EBA's formula, as written out for the first of its checks. Cells are written as {template, row, column, sheet}.
{R_12.00.a,r0060,c0040,} >= 0The next five:
{R_12.00.a,r0050,c0060,} >= 0{R_12.00.a,r0070,c0080,} >= 0{R_12.00.a,r0060,c0070,} >= 0{R_12.00.a,r0060,c0090,} >= 0{R_12.00.a,r0070,c0060,} >= 0And 12 more, the same formula for the other cells it covers.
Other rules on R 12.00.a
- None of the twelve values it checks in information on remuneration of staff whose professional activities have a material impact on institutions’ risk profile (identified staff) (I) can be negative (v12129_s)Warning
- Total number of identified staff, total must equal the sum of its 13 parts (v12593_m)Warning
- Total MB must equal MB supervisory function plus MB management function (v12594_m)Warning
- If members of the MB is reported, total remuneration of identified staff must be reported (v12694_m)Warning
- If other senior management is reported or other identified staff is reported, total remuneration of identified staff must be reported (v12695_m)Warning
- If total remuneration of identified staff is reported, variable remuneration must be reported (v12696_m)Warning
- If total remuneration of identified staff is reported, fixed remuneration must be reported (v12697_m)Warning
Every REM benchmarking rule, by template
Checks like this one, run at the point of submission, are the first step to real-time supervision.