Monday June 5 2023
News Source: Fund Regulation
Focus: MIFID and MIFIR
Type: General
Country: Spain
The Spanish National Securities Market Commission (CNMV) notified the European Securities and Markets Authority (ESMA) on June 2nd, 2023 that it complies with the Guidelines relating to certain aspects of the remuneration requirements of MiFID II and, therefore, takes them into account in its supervisory actions.
Design of remuneration policies and practices:
- Regarding the requirement to consider qualitative criteria (not only quantitative) established in art. 27 of the MiFID II Delegated Regulation, it is established that the weight of qualitative criteria should not be negligible and should not be used to indirectly reintroduce quantitative commercial criteria that could create conflicts of interest;
- Regarding the requirement established in art. 27 of the Delegated Regulation of MiFID II that there is at all times an adequate balance between fixed and variable remuneration, it is indicated that entities must allow the application of a flexible variable remuneration policy that includes the possibility of not paying any variable remuneration when for example, the qualitative objectives are not met.
- Recommendations are incorporated to encourage the alignment of the interests of the entities and those of the competent persons in the provision of investment services with those of the clients in the medium and long term. In particular, the application of ex post adjustment criteria on variable remuneration is included.
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