Judgment_paragraph 6 · HOLD Alapkezelő Befektetési Alapkezelő Zrt. v Magyar Nemzeti Bank (C-352/20)

6Article 14a of that directive provides:1. Member States shall require management companies to establish and apply remuneration policies and practices that are consistent with, and promote, sound and effective risk management and that neither encourage risk taking which is inconsistent with the risk profiles, rules or instruments of incorporation of the UCITS that they manage nor impair compliance with the management company’s duty to act in the best interest of the UCITS.2. The remuneration policies and practices shall include fixed and variable components of salaries and discretionary pension benefits.3. The remuneration policies and practices shall apply to those categories of staff, including senior management, risk takers, control functions and any employee receiving total remuneration that falls within the remuneration bracket of senior management and risk takers whose professional activities have a material impact on the risk profiles of the management companies or of the UCITS that they manage.4. In accordance with Article 16 of Regulation (EU) No 1095/2010 [of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ 2010 L 331, p. 84)], [the European Securities and Markets Authority (ESMA)] shall issue guidelines addressed to competent authorities or to financial market participants concerning the persons referred to in paragraph 3 of this Article and the application of the principles referred to in Article 14b. Those guidelines shall take into account the principles on sound remuneration policies set out in Commission Recommendation 2009/384/EC [of 30 April 2009 on remuneration policies in the financial services sector (OJ 2009 L 120, p. 22)], the size of the management company and the size of the UCITS that they manage, their internal organisation, and the nature, scope and complexity of their activities. …’