Prudential Regulation Authority Rulebook

3.1

A firm must, save where otherwise stated, apply the requirements of this Part in relation to a person (a “material risk taker”) who is:

1. (1) an employee of a CRR firm whose professional activities have a material impact on the firm’s risk profile, including any employee who is deemed to have a material impact on the firm’s risk profile in accordance with criteria set out in articles 3 to 5 of the Material Risk Takers Regulation; or
2. (2) subject to 3.2, an employee of a third country CRR firm who would fall within 3.1(1) if it had applied in relation to him or her.

[Note: Material Risk Takers Regulation]

3.2

A third country CRR firm may deem an employee not to be a material risk taker where:

1. (1) the employee:
1. (a) would meet any of the criteria in Article 4(1) of the Material Risk Takers Regulation,
2. (b) would not meet any of the criteria in Article 3 of the Material Risk Takers Regulation; and
3. (c) was awarded total remuneration of less than €750,000 in the preceding financial year; and
2. (2) the third country CRR firm determines that the professional activities of the employee do not have a material impact on its risk profile on the grounds described in Article 4(2) of the Material Risk Takers Regulation.

[Note: Material Risk Takers Regulation]

3.3

Where a third country CRR firm deems an employee not to be a material risk taker as set out in 3.2, it must notify the PRA, applying exactly the approach described in Article 4(4) of the Material Risk Takers Regulation.

[Note: Material Risk Takers Regulation]

3.4

A firm must maintain a record of its material risk takers in accordance with the Record Keeping Part.

[Note: Material Risk Takers Regulation]

3.5

A firm must take reasonable steps to ensure that its material risk takers understand the implications of their status as such, including the potential for remuneration which does not comply with certain requirements of this Part to be rendered void and recoverable by the firm.

[Note: Material Risk Takers Regulation]