Submission to APRA's Consultation: CPS511 Remuneration Revised Draft

Description

APRA is planning to revise prudential standards relating to remuneration practices in regulated financial institutions. This is an important response to the Hayne Royal Commission into financial services misconduct. A number of proposals are extremely contentious in the industry and APRA received many submissions in the first round of consultation. This submission relates to the second round of consultation on the revised draft prudential standard CPS511. Our submission, based on experimental research since 2017, supports the use of deferrals in relation to short-term incentives. We caution against the use of non-financial criteria for determining short-term incentives due to their inherent biases.

Period	11 Feb 2021
Work for	Australian Prudential Regulation Authority, Australia, New South Wales
Degree of Recognition	National