4:113 The IFD requires the Member States to ensure that firms set appropriate ratios between the variable and fixed components of total remuneration in their remuneration policy, taking into account the firm’s commercial activities (and the associated risks) and the impact that the relevant categories of staff have on its risk profile.

4:114 However, Recital 25 to the IFD specifies that the Member States may adopt stricter national requirements concerning the maximum ratio between the variable and fixed components of remuneration or even impose such a ratio on all investment firms (or certain ones).

4:115 Belgium has exercised the option (explicitly) provided for by the IFD and maintained the cap on the variable component of remuneration at a level similar to that applicable to credit institutions, i.e. the higher of the two following amounts (i) 50% of the fixed component of remuneration or (ii) €50,000 provided this amount does not exceed the fixed component of remuneration.

4:116 Maintaining this cap allows for a level playing field with banking groups that also engage in investment activities.