Croatian National Bank has published Decision on remuneration policy
Tax Alert, June 2013
Following Amendments of the Credit institutions Act, in force from 15th May 2013, Croatian National Bank has published Decision on remuneration policy on its web pages.
Among other, following terms are defined in Decision: remuneration, employee, variable remuneration, person who takes over the risk, deferred compensation and other terms which have to be aligned with provisions of this Decision within financial institutions, by means of having remuneration policy.
Decision prescribes, among other, the following:
- Financial institution has to have risk analysis, which has to be properly documented. Based on this analysis it should be determined whether the financial institution has to be fully in line with Decision or only partially;
- Obligation to have remuneration policy;
- General and specific demands of the remuneration policy. General demands are applying to all employees, while specific ones are applied only to the employees who’s professional activities have material influence on risk profile of the financial institution.
Furthermore, the Decision prescribes that financial institution has to have supporting documents in relation to the remuneration policy, and the terms under which reporting obligation towards Croatian National Bank arises are also prescribed.
Decision will come into force eight days after publishing in National Gazette and credit institution will have to align with provisions of Decision until 30th June 2013.