Disclosure of information relating to Remuneration structure and strategy

4. The information which an Authorised Person provides to the Regulator relating to its Remuneration structure and strategies should be included in the annual report or accounting statements. The Regulator expects the annual report of Authorised Persons to include, at a minimum, information relating to:
a. the decision making process used to determine the Authorised Person-wide Remuneration policy (such as by a Remuneration committee or an external consultant if any, or by the Governing Body);
b. the most important elements of its Remuneration structure (such as, in the case of performance based Remuneration, the link between pay and performance and the relevant assessment criteria); and
c. aggregate quantitative information on Remuneration of its Governing Body, the senior management, Persons Undertaking Key Control Functions and any Major Risk-Taking Employees.
5. The Regulator may, pursuant to its supervisory powers, require additional information relating to the Remuneration structure and strategy of an Authorised Person to assess whether the general elements relating to Remuneration under Rule 3.3.42(1) are met by the Authorised Person. Any significant changes to the Remuneration structure and strategy should also be notified to the Regulator before being implemented.
6. The information included in the annual report is made available to the Regulator and the shareholders, and in the case of a listed company, to the public. The Governing Body of the Authorised Person should also consider what additional information should be included in the annual report. In the case of Banks, Insurers and dealers, more detailed disclosure of Remuneration structure and strategy and its impact on the financial soundness of the Authorised Person would be required. When providing disclosure relating to Remuneration in its annual report, Authorised Persons should take account of the legal obligations that apply to them including the confidentiality of information obligations.