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The Amendments To The "normative Provisions On Fundamental Principles Of Remuneration Policy"

Original Language Title: Grozījumi "Normatīvajos noteikumos par atalgojuma politikas pamatprincipiem"

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Financial and capital market Commission, the provisions of regulations No 267 Riga, 6 December 2013 (financial and capital market Commission Council meeting No. 47 8. p.) The amendments to the regulations the rules on pay "policy guidelines" issued in accordance with the financial and capital market Commission Act 7 of the first paragraph of article 1 and paragraph 2 of article 17 to make financial and capital market Commission 21.01.2010. Regulation No 171 "the legislative provisions on remuneration policy the basic principles" (hereinafter-the rules) the following amendments: 1. Express provisions paragraph 1 by the following: "1." the legislative provisions on remuneration policy the basic principles "(hereinafter-the rules) determines the basic principles of remuneration policy and are binding on the Republic of Latvia registered credit institutions and investment firms that license allows to provide the financial instruments market law, article 3 of the fourth part 5 and 6 referred to investment services (hereinafter referred to as the authority). The rules laid down in the basic principles of the remuneration policy should be applied to the other investment firms, insurance companies and reinsurance companies as well as investment management companies and private pension funds. " 2. Express provisions 3.4 as follows: "significant remuneration 3.4 the variable part: 35 percent to 60 percent (not including) from official or employee remuneration laid down in the reference year;". 3. Express provisions of point 3.5 as follows: "3.5. particular high pay variable part: 60% or more of the official or employee remuneration laid down in the year." 4. Express provisions 4.1 the following wording: "4.1. the requirements of this regulation are applied to all levels of the Organization posts whose professional activities individually or collectively essential impact on the risk profile of the institution, such posts as members of the Board, posts that include the powers of the authority, to take risks that impact on the risk profile of the institution, the institution posts that carry out internal control functions, as well as posts that pay is equal to or greater than the members of the Board of the authority or position that mandate is the name of the institution to take the risk that material impact on the risk profile of the institution, job family salary scale at a lower level (hereinafter also – the risk profile of the institution-post); ". 5. Express provisions of 4.2 as follows: ' 4.2. officials or employees, subject to the requirements of this regulation, undertake not to use personal hedging strategies or remuneration and liability insurance, which reduce the risk of any adjustment, established remuneration policy, impact on remuneration; ". 6. To express the rules point 4.3 as follows: "4.3. in the variable part of the remuneration cost, is not using the tools or methods that contribute to the avoidance of these rules or a regulation of the European Parliament and of the Council (EU) no 575/2013 (26 June 2013) for the prudenciālaj requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 (hereinafter the EU Regulation No. 575/2013) requirements." 7. Express provisions of paragraph 6.5 in the following wording: "6.5. takes note that the guaranteed amount of the variable part of the remuneration determination does not satisfy the prudent risk management or the variable part of the remuneration for the performance of the determination in accordance with the requirements of this regulation and may not provide the pay plans of the future (prospective plans of remuneration). Guaranteed about the variable part of the remuneration may be determined only exceptionally, officials or new hiring cases first working year if it does not interfere with the authority to maintain adequate capital base (a sound and strong capital base). " 8. Add to rule 7.3. point after the words "the highest level" with the words "officials or". 9. To complement the rule 7.4. point after the words "the highest level" with the words "officer or". 10. Express provisions of 8.2 second paragraph as follows: "the Management Board of the authority provide the risk profile of the institution-post reviewer information on their performance in the assessment and determination of the variable part of remuneration to be used in indicators and methods, as well as ensure that internal legislation for the determination of remuneration, t.sk. the evaluation process and its results, are clearly documented and available internally, as far as necessary to the function or job responsibilities or to the extent that they relate to a particular official or employee. " 11. Express provisions of paragraph 9 the last sentence of the first paragraph the following wording: "the remuneration Committee's internal regulations shall be drawn up, taking into account the institution's shareholders, investors and other interested parties, as well as the long-term interests of the public interest." 12. To supplement the provisions of paragraph 9 of the second paragraph after the words "the highest level" with the words "officer or". 13. Express provisions of paragraph 9, third and fourth paragraph as follows: "for the wages of the head of the Committee shall appoint one of the members of the Council of the authority. The remuneration Committee members may be appointed only members of the Council of the authority, except where the law provides for the officials, who is not a member of the Council of the authority, or the employee representation bodies. In this case, the remuneration Committee members may appoint the Authority official, who is not a member of the Council of the authority, or employee. The authority shall ensure that the assessment and decisions on the remuneration Committee's usefulness is documented and reasonable. " 14. Express provisions of paragraph 10 of the first and the second sentence as follows: "10. Remuneration policy and related internal legislation drafting, implementing and ensuring compliance with the involved officers or employees that the authority carry out internal control functions, and officials or employees who carry out personnel management authority, as well as, if necessary, shareholders and external experts. Officials or employees participating, remuneration Committee members, shareholders, external experts, as well as for the Authority's remuneration policy for Executive Council members should be: ". 15. To complement the rule 11.1. point behind the words "appropriate qualifications" with the words "officer or". 16. Make the rule 11.2. point as follows: "the remuneration elements, 11.2. t.sk. salaries, bonuses, long-term incentive schemes, performance shares or share-related instruments, the consideration of the contract or the termination of the mandate in the case of contributions to private pension fund pension plans, retirement benefits are linked (discretionary pension benefits) and other retirement costs in accordance with the Authority's pension policy that meets the institution's values, such as ethical standards, long-term interests, development strategy operational objectives , payments linked to compensation for damages or the release of the officer or employee's obligations arising from the previous employer mandate concluded contract or the termination of the employment contract and which meets the long-term interests of the institution, including non-monetary instruments of policy (retention policy) under this rule 11.7, essential requirements and in particular high pay variable part of a suspension order under this provision the requirements of paragraph 11.6 the variable part of remuneration adjustment mechanisms in accordance with the provisions of paragraph 11.9.1 requirements, as well as performance, etc.; ". 17. Express provisions of paragraph 11.3 as follows: "11.3. risk profile influencing positions and financial and non-financial indicators and methods for the assessment of the performance and the variable part of the remuneration and the variable part of the remuneration does not. The authority shall ensure that the assessment and decisions taken on the risk profile of the institution-the post has documented, as well as a clear distinction between indicators used to determine the remuneration unchanged: 11.3.1. the part that mostly reflects the officer or employee's professional experience and the level of responsibility specified in the respective officers or employee's job description, which is an integral part of the contract of employment; 11.3.2. the variable part of the remuneration which reflects the official or employee performance, which exceeded its job description, what is an integral part of the Treaty, the requirements of the stability and related existing and potential risk assessments; ". 18. Make the rule 11.6. the last sentence of paragraph by the following: "the variable part of the salary deferral period is determined according to the business cycle, its risks and the officials or employees involved in the operation;". 19. Express provisions of paragraph 7.3 as follows: "7.3. particular high pay procedures for the determination of the variable part, noting that, if the authorities of the capital securities are admitted to trading on a regulated market, then the particular high pay variable part of discovery necessary not less than 50 per cent of its monetary form shall be in the form: 11.7.1. shares or share-related instruments; 11.7.2. If possible, the EU Regulation No. 575/2013 52. the requirements of article 63 and the appropriate tools or other tools that fully convertible (converted) first level of basic capital instruments or writing (written down) and in all cases, the appropriate authorities reflect the credit quality of its ordinary activities (in the credit quality of the institution as a going concern), as well as being suitable for use for the determination of the variable part of the remuneration. Authority in respect of the instruments referred to in this paragraph lays down the monetary instruments not holding policy (retention policy), i.e. the number of years in which the recipient is a non-monetary instruments shall not be entitled to sell them, to ensure that the remuneration policy of the Authority set out in the compliance scheme incentive institutions long-term interest; ". 20. To complement the rule 11.8. point after "errors and shortcomings" with the words "or not properly carried out a professional activity (misconduc)." 21. To complement the provisions of the third sentence of paragraph 11.9.1 before the words "mechanisms" with the word "adjustment". 22. To supplement the provisions of the fourth 11.9.1 sentence the following wording: "the authority shall lay down the criteria that the adjustment mechanism for the application and ensure that they cover situations in which the officer or employee attended or was responsible for the action, as a result, there was a significant loss to the authority, or situations in which the officer or employee does not meet the relevant eligibility and compliance standards (standards of fitness and propriety);". 23. Make provision in paragraph 11.9.2 third sentence the following wording: "the Authority noted that the variable part of the remuneration of the actual cost of the deferred part can be made after it is acquired, irrevocable rights, as well as the variable part of the remuneration deferred part to which the irrevocable is acquired rights are not defined, calculated and paid out in dividends or interest;". 24. To supplement the provisions of paragraph 11.10.2 before the word "employee" in the fold with the words "officer or" the fold. 25. in paragraph 12 of the rules off the third sentence. 26. To complement the rules with 13.1 points by the following: "13.1 authority shall develop methods of contents, use the variable part of the remuneration structure comprising the elements or the variable part of the remuneration structure of the elements that make up the total (pools of variable remuneration components) calculation, adjustment, taking into account: 13.11. results associated with the activities of existing and potential risk assessments; 13.12. expenditure on capital, as well as the costs for liquidity. The authority shall ensure that the variable part of the remuneration structure of the elements making up the distribution within the institution, taking into account the level of breakdown in the performance of the existing and potential related risk assessments. " 27. Express provisions 16.1 points in this version: "10.0 discovers information about the remuneration policy and practice in accordance with the financial and capital market Commission's regulatory rule Nr. 02.05.2007.61" disclosure and transparency of the authority of the legislative provisions ", the requirements of paragraph 28, but for the current period, from 1 January 2014, in accordance with EU Regulation No. 575/2013 article 450, subject to the requirements of individual data protection legal requirements." 28. Make provisions 17.1 points as follows: "17.1 these terms referred to in paragraph 2.1 of the credit institutions and investment firms to submit information to the Commission in accordance with the provisions of annex 1 and 2 requirements for those executives or employees whose remuneration during the reference year is equal to or greater than eur 1 million (-highly rewarded employees)." 29. Make the informative reference to European Union directives as follows: "Informative reference to European Union Directive provisions included in the law arising from the European Parliament and of the Council of 26 June 2013 Directive 2013/36/EU on access to credit and the credit institutions and investment firms for the monitoring of the prudenciāl, amending Directive 2002/87/EC and repealing Directive 2006/48/EC and 2006/49/EC. ' 30. Express provisions of point 2.5 of annex 1 in the following wording: "2.5. the report totals presented in euro. Remuneration set in foreign currency shall be converted into euro according to the accounts of the foreign exchange rate used; ". 31. Express provisions of annex 1, paragraph 3, the second sentence as follows: "If you are not in one of the Member States in which the provisions referred to in paragraph 2.1 of the credit institutions and investment firms to carry out their commercial activities, there are no highly paid employee, the report is prepared and submitted to the Commission." 32. These regulations shall enter into force, with the exception of Amendment 01.01.2014. rule 4.1, the entry into force of the term which is determined directly applicable European Union legislation, which will provide qualitative and quantitative criteria for officials or employees whose professional activities have a material impact on the risk profile of the institution,. Financial and capital market Commission President k. Zakuli States