CEBS Publishes Consultation Paper on Remuneration Guidelines

On October 8, 2010, the Committee of European Banking Supervisors (”CEBS”) released a Consultation Paper on Guidelines on Remuneration Policies and Practices (the ”Consultation Paper”). CEBS is tasked with adopting guidelines under “CRD III,” an amendment to the EU’s Capital Requirements Directive that was approved by EU Council of Ministers in October 2010. CRD III addresses, among other items, remuneration policies and practices at credit institutions and investment firms. The Consultation Paper requests comments by November 8, 2010. CEBS’ final guidelines, to be issued after the consultation period, will be highly influential on EU Member State regulators’ implementation of CRD III. The Alert Memo highlights a number of key issues that may significantly affect the implementation of CRD III.