14 April 2020
The European Banking Authority (EBA) has published the first phase of its reporting framework 2.10 - a set of amendments to the current EBA supervisory reporting requirements framework. The EBA uses this framework for remuneration benchmarking, based on information collected in previous years, and separately produces a high earners report.
The EBA is updating the format and methodology the EBA uses to gather information for benchmarking and reports in regard to remuneration. For remuneration, the format will now reflect the integration of the remuneration benchmarking templates and the EBA Guidelines on the data collection exercise regarding high earners into the data point management (DPM) and eXtensible Business Reporting Language (XBRL) taxonomies.
This is what they have said about the technical formatting: The DPM is a structured representation of collected data (such as business concepts and validation rules) containing all the relevant technical specifications necessary for developing an IT reporting solution. The XBRL Taxonomy presents the date described by the DPM in the technical format of an XBRL taxonomy (a standards-based way to communicate and exchange business information between business systems).
This comes as part of a wider package including the integration of the EBA Guidelines on fraud reporting, new specific reporting requirements on market risk, technical amendments on the Resolution framework and changes to the Implementing Technical Standards on Supervisory Benchmarking of internal models.
The changes in the format in how the data will be collected should not change what data is being collected. These changes are being phased, with the earliest applying from late December this year and the latest from late March 2021, and they are primarily intended for use in data transmission between competent authorities and the EBA, keeping on top of these updates is key as authorities may choose to use the proposed XBRL taxonomy or a similar one for collecting data from credit institutions and investment firms. This may mean that the way in which credit institutions and investment firms report information for remuneration benchmarking and the high earners report may change to include DPM and XBRR taxonomies.
If you have any questions about this update or in relation to your remuneration regulation compliance generally, please do contact us.
Janet Cooper OBE