Regulatory Technical Standards on classes of instruments that are appropriate to be used for the purposes of variable remuneration

These RTS set out requirements to ensure that institutions’ credit quality is reflected in the instruments they issue and that they are appropriate for the purposes of variable remuneration. In particular, these draft RTS introduce requirements for additional Tier 1, Tier 2 and other instruments and they define the write-down and conversion mechanisms for Tier 2 and other instruments. The RTS will be part of the Single rulebook aimed at enhancing regulatory harmonisation in the EU.