Proposed Bonus Cap Reform: Update on identified Staff
15/04/26
Following the approval of the legislative amendment of the Financial Markets Supervision Act (FMSA) by the Dutch House of Representatives, further clarification has been provided on the application of the intended revised bonus cap. In the explanatory note submitted to the Dutch Senate on 30 March 2026, the Minister of Finance elaborates on how the concept of Identified Staff should be interpreted in practice.
Clarification of the Identified Staff concept
We refer to our Update on Dutch Bonus Cap Reform of 30 January 2026. Under the proposed amendment of the FMSA, the strict Dutch 20% cap will only remain applicable to persons whose activities materially affect the risk profile of the financial institution also referred to as “Identified Staff”.
The explanatory note confirms that the interpretation of Identified Staff should align with the regulatory framework applicable to the relevant financial institution. Where European legislation already prescribes which roles materially affect an institution’s risk profile, such as under the CRD framework for banks and large investment firms, the Solvency II Directive and related regulations for insurers or under other sector‑specific EU remuneration regimes for other financial institutions, that framework remains decisive.
At the same time, institutions for which the concept of identified staff is new are not required to adopt the banking‑specific definition. Instead, they are expected to determine which roles fall within scope based on a proportionate, substantiated and risk‑based assessment considering their risk profile. A valuable explanation of the proposed amendment: not all financial institutions are required to apply the extensive CRD Identified Staff selection framework.
The Minister also explicitly confirms that this qualification cannot be fragmented. Individuals cannot partially fall within and partially outside the scope of the bonus cap depending on specific tasks or responsibilities.
Resulting differentiation within organizations
The proposed changes result in further internal differentiation within financial institutions. While the reform introduces increased flexibility for non‑identified staff, it simultaneously leads to a more restrictive and tightly defined remunerationframework for identified staff. This underscores the need for a robust remuneration architecture, consistent role classification, well-substantiated Identified Staff selection frameworks and transparent governance arrangements to ensure both compliance and effective reward outcomes under the new regime.
What does this mean for your organisation?
The proposal to amend the FMSA is part of a wider bill which still needs to be approved by the Dutch Senate. Currently it is not yet clear when the proposed changes will become effective but it is recommended to start preparations at short notice.
As indicated before in our Update on Dutch Bonus Cap Reform of 30 January 2026, we recommend taking concrete next steps, including assessing your current reward structures and practices, anticipating employee (representative bodies) expectations around increased variable pay, evaluating potential implications for Identified Staff and other staff variable pay levels / differentials and identify the most impactful opportunities for your organisation, to ensure your organization is well-prepared for the post-“bonus cap reform” era.
As part of these preparations, financial institutions that already identify Identified Staff should reassess their selection framework and validate whether their current Identified Staff population remains appropriate. For institutions for which Identified Staff is a new concept, the key challenge is to design a proportionate, substantiated and riskbased selection framework aligned to their risk profile, and to determine the resulting Identified Staff population. PwC’s Executive Reward team can support this process with specialist reward and regulatory advice, drawing on our indepth experience with European Identified Staff criteria and their practical application.
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