Q&A · ESMA

Payments to be considered as remuneration

Answered

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AI-generated Summary

In a Commission answer, dividends paid to a majority shareholder of a small closely held firm who is also an employee, manager and board member count as remuneration under Article 2(5) of the MiFID II Delegated Regulation, so the remuneration policy rules in Article 27 apply.

Details

Reference	ESMA_QA_1997
Issuer	ESMA
Published	28 Feb 2025
Answered	28 Feb 2025
Submitted	26 Oct 2023
ESMA topics	Remuneration

Provisions it relates to

Article 24 MiFID II · General principles and information to clients
MiFID II
Inferred · 75%
MiFID II (whole act)
Explicit reference

Documents it refers to

Delegated actIn forceExplicit reference
Commission Delegated Directive (EU) 2017/593 of 7 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to safeguarding of financial instruments and funds belonging to clients, product governance obligations and the rules applicable to the provision or reception of fees, commissions or any monetary or non-monetary benefits
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryThe MiFID II Delegated Directive on safeguarding client financial instruments and funds (deposits, use of client assets, title transfer collateral, a single officer responsible, auditor reports), product governance duties for manufacturers and distributors, and inducements, including rules for independent advice, portfolio management and research. Since amended, including by Delegated Directives 2021/1269 (sustainability) and 2026/374 (research payment).