ABI (Associazione Bancaria Italiana)

The subject matter and scope of the guidelines are sufficiently clear.
We agree with the provision to use the variable “number of heads” in the place of the FTE, referring to the staff in service at the end of the year.
Values are to be indicated in € and not in millions of €, as provided for in the 2012 guidelines.
For the purposes of proper compilation and to ensure uniformity at a European level, it would appear to be necessary to specify what is meant by management body in its function as an oversight and governance body in its managerial function.
It is necessary to specify the meaning of Corporate function: for example, Human Resources and IT are indicated in the notes. For a banking group, the group's Human Resources and IT departments act all across the entire group, whilst those departments in companies that are a part of the group are transversal for each individual company. Are these to be nevertheless included within the scope of Corporate function?
It shoul be useful to insert a note in the table to specify that the values are at the year end.
Greater granularity of the requests has been noted both in terms of a greater disaggregation of the business areas and of the information requested.
Indeed, the disaggregation of the variable deferred remuneration component in cash, stock and instruments linked to other financial instruments was included. There is no indication whatsoever for at least 5 years of the deferred remuneration paid in instruments to which it is possible to apply the discount rate; it is requested that an item be inserted wherein this component is indicated in order to assess the application of the provision contained in the Directive.
In addition, there have been included requests in terms of severance and variable remuneration assigned for multi-year periods, regarding which there is no evidence of EU legislation (this latter variable was also included in the remuneration benchmarking).
The additional requests have no correspondents in the provisions introduced with the Directive and EU Regulations. Therefore, these represent an additional management burden not estimated in the charges connected to EU regulations.
It should be clarified the definition of “independent control functions” especially as regards the concept of “independent” (as it seems to have a different meaning from “control functions”).
Please, clarify also what is intended by “Total amount of variable remuneration deferred in year N” – meaning the confirmation that it refers to the deferred part of the incentive awarded for year N (therefore part of “Total variable remuneration” above) or, alternatively, that it refers to the previous years deferrals vesting in year N.
The reporting period and the specific amounts to be reported are sufficiently clear.
As concerns the request in 3.4, it should be better specified what is meant by “do not revolve on an annual basis”; it is assumed that this has to do with systems where the new multi-year plan begins only when the previous plan ends.
Then for the other multi-year plans (“revolve on an annual basis”) the remunerations shall be recognised proportionally over the different fiscal years to which they pertain.
The document provides that the data be transmitted to the competent authorities by 31 August 2014 and to the EBA by 31 October 2014.
The timeframe available to the intermediaries is too short to enable reporting under the new provisions.
The consultation ends on 7 May 2014. The EBA will then publish the consultation findings and guidelines. Then the competent national authorities shall introduce the guidelines in their own country.
The time left to the intermediaries for preparing the reporting is quite limited and insufficient for gathering such granular information and for making changes in their information reporting procedures.
Therefore, it is hereby requested that the new reporting be prepared for the first time with regard to the 2014 fiscal year, still keeping the 31 August 2014 deadline for the transmission of the 2013.
In addition, it should be noted that the public disclosure provided by many businesses in their 2013 financial statements (published in early 2014), was set out based on previous legislative provisions, using the forms from the 2012 Guidelines. It would therefore be appropriate to avoid duplication of the burdens for 2013.
The greater granularity of the requests, as in terms of the greater disaggregation of the business areas as of the information requested, does not represent a direct consequence of the provisions contained in the Regulation and in the EU Directive; therefore it should be assessed within the economic impact of the guidelines.
The additional information requested concern the disaggregation of the variable deferred remuneration in cash, stock and instruments linked to other financial instruments. There is no provision for the identification of the deferred remuneration paid in instruments for at least 5 years, to which it will be possible to apply the nominal discount rate, which is the reason indicated on page 18, which would justify the additional information included.
In addition, there have been included requests in terms of severance and variable remuneration assigned for multi-year periods, regarding which there is no evidence of EU legislation.
The affects connected to the legislation – not pointed out in the document - have their origins in the implementation of the new system, only in part attributable to the EU legislation (one off cost) and to the ongoing cost for reclassification in case the personnel change position and job.
Pietro Scabellone
A