Clifford Chance

Russia is about to introduce 'CRD-IV' Style Regulation (Russian)

20 December 2013

In line with Russia's commitments as a member of the G20, in July 2013 Russian banking legislation was amended to introduce, as of 1 January 2014, a requirement for Russian banks to have remuneration systems that adequately reflect the nature and scale of operations carried out by the banks, the risks assumed by the banks and the financial results achieved. In particular, the legislation requires the deferral of bonuses with the possibility of downward adjustments or cancellation (but no claw-backs are currently envisaged). The law has further authorised the Russian Central Bank (the "CBR") to establish requirements for banks' remuneration systems and to evaluate compliance with such requirements. The CBR has recently published a draft regulation on remuneration systems

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