RTS: Instruments reflecting credit quality for variable remuneration

This regulation sets technical standards to identify which financial instruments accurately reflect a bank's credit quality as a 'going concern'. It ensures that the instruments used to link executive pay to the bank's long-term health are reliable and transparent.

This affects financial institutions and their executives. It changes how variable remuneration (bonuses) is structured by specifying which instruments can be used to align pay with the institution's actual financial stability.