Updates to Remuneration Requirements for EU Investment Firms

By Panayiotis Antoniou,
CEO, MAP Risk Management Services Ltd (MAP RMS)

This article discusses the updated remuneration requirements for EU investment firms under the Investment Firm Directive (IFD). Implemented in Cyprus through Law 165(I)/2021, these rules establish key principles for creating transparent, risk-conscious, and gender-neutral remuneration policies.

CIFs must ensure that their policies promote effective risk management, align with company objectives, and undergo an annual review. Special rules apply to “identified staff” (those impacting the firm’s risk profile), with guidelines on variable pay, including deferrals and the use of non-cash instruments like shares.

Firms with over EUR 100 million in assets must form a remuneration committee to oversee policies and effectively manage risks. Reporting obligations include disclosing data on high earners and adhering to CySEC’s gender pay-gap benchmarking guidelines.

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