Remuneration Regulation for Banks and Insurance Companies

Aligned with Basel Committee and FSB compensation principles, this regulation requires banks, insurers, reinsurers and UAE branches of foreign institutions to identify Material Risk Takers, defer 3-5 years of variable pay for them, embed malus/clawback provisions in contracts, and have the Board approve remuneration policy annually via a dedicated Remuneration Committee. Institutions face a gap-analysis deadline of 11 October 2026 and full compliance by 14 July 2027.

What firms should do

Yes — identify Material Risk Takers, update remuneration policy/contracts for deferral and malus/clawback, and complete gap analysis by 11 October 2026

Regulator: Central Bank of the UAE
Type: New Regulation/Standard
Status: Final/In Force
Published: 13 Mar 2026
Takes effect: 14 Apr 2026
Reference: Circular No. 5/2026 (Notice No. CBUAE/BIS-RD/2026/2171)
Topic: Governance
Impact: High

Read it on the regulator's website

Found automatically on the regulator's website and summarised by AI by Arakan Lexara. Not legal advice; check the official source before relying on it.

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