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GEN 5.3.31

(1) The Governing Body of an Authorised Person must ensure that the remuneration structure and strategy of the firm:
(a) are consistent with the business objectives and strategies and the identified risk parameters within which the firm's business is to be conducted;
(b) provide for effective alignment of risk outcomes and the roles and functions of the Employees, taking account of:
(i) the nature of the roles and functions of the relevant Employees; and
(ii) whether the actions of the Employees may expose the firm to unacceptable financial, reputational and other risks;
(c) at a minimum, include the members of its Governing Body, the senior management, Persons Undertaking Key Control Functions and any major risk-taking Employees; and
(d) are implemented and monitored to ensure that they operate, on an on-going basis, effectively and as intended.
(2) The Governing Body must provide to the DFSA and relevant stakeholders sufficient information about its remuneration structure and strategies to demonstrate that such structure and strategies meet the requirements in (1) on an on-going basis.
(3) For the purposes of this Rule, "major risk-taking Employees" are Employees whose actions have a material impact on the risk exposure of the Authorised Person.
[Added] DFSA RM95/2012 (Made 14th June 2012). [VER29/06-12]