Remuneration Policy Summary
Dimensional Ireland Limited
March 10, 2021
In accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities (“UCITS”)) Regulations 2011, as amended (the “UCITS Regulations”) and European Securities and Markets Authority’s Guidelines on Sound Remuneration Policies under the UCITS Directive (the “ESMA Guidelines”), Dimensional Ireland Limited (the “Company”) is required to have remuneration policies and practices for certain staff (“Identified Staff”) whose professional activities have a material impact on the risk profiles of the Company or any of the UCITS it manages (the “Funds”).
2. Policy Framework
The remuneration policies and practices of the Company (the “Policy”) have been designed to be in a manner that (i) are consistent with, and promote, sound and effective risk management and (ii) neither encourage risk taking which is inconsistent with the policies, risk profiles or articles of association of the Company and any Funds it manages nor impair compliance with the Company’s duty to act in the best interests of those Funds.
When determining remuneration, the Company considers several factors, including, but not limited to, the market rate, qualifications and experience and the relative value of the position within the Company. Remuneration is tailored to promote integrity and soundness in the Company with a focus on long term interests.
3. Application of the Policy
The Policy applies to Identified Staff, being those whose professional activities have a material impact on the risk profile of the Company or of the Funds (if any). The Company currently has employees, a board of directors (each, a “Director” and collectively, the “Board”), including an organisational effectiveness director (the “OE Director”), designated persons (each, a “Designated Person” and collectively, the “Designated Persons”) and a money-laundering reporting officer (“MLRO”). The Board is responsible for overseeing the Company’s remuneration practices.
The Directors (not including the OE Director) and the MLRO do not receive remuneration from the Company in their capacity as Directors or MLRO (as applicable) and are therefore not subject to the remuneration provisions of the Policy in their capacity as Directors or MLRO (as applicable).
The Head of Office and the other Identified Staff of the Company (including Designated Persons) may receive remuneration from the Company. These Identified Staff may receive remuneration in the form of fixed compensation and discretionary bonuses as well as other forms of remuneration in such capacity and are therefore subject to the remuneration provisions of the Company’s policy.
The independent member of the Board who is the OE Director receives a fixed fee only and does not receive performance-based or variable remuneration, which should limit any potential conflict of interest.
The Company does not pay any variable remuneration to any of its Directors (including the OE Director) or the MLRO in their capacity as Directors or MLRO (as applicable).
The Company may however pay variable remuneration (including discretionary bonus awards as well as other forms of remuneration) to the Head of Office (who may also be a Designated Person) and the other Identified Staff of the Company (who may also be Designated Persons).
The Company is required to comply with Article 5 of Regulation (EU) 2019/2088 on Sustainability‐related Disclosures in the Financial Services Sector (the “Disclosure Regulation”) which requires the inclusion in its remuneration policy of information on how there is consistency with the integration of sustainability risks.
The structure of remuneration is not considered to encourage excessive risk‐taking with respect to sustainability risks. It is not considered that there is any conflict of interest or pursuit of less sustainable opportunities with the goal of increasing compensation payable to any Director (acting in that capacity) or MLRO of the Company.
In respect of any variable element of remuneration payable to relevant Identified Staff, the Identified Staff are evaluated (among other considerations) on their ability to maintain compliance with applicable laws, regulations and policies, including compliance with the Company’s Sustainability Risks Integration Policy.
4. Compensation Committee
The Company does not consider that its size, the size of any Funds it may manage, the complexity of its internal organisation or the nature, scope and complexity of its activities are such that it must establish its own remuneration committee according to the rules of the Central Bank of Ireland.
On an annual basis, the Company’s Designated Person for Regulatory Compliance shall either confirm that there has been no material change to the Policy or provide details of the changes to the Board. The Policy will be reviewed by the Board annually and the Board is responsible for, and oversees, its implementation in line with the UCITS Regulations.
Issued by Dimensional Ireland Limited (DIL), with registered office 10 Earlsfort Terrace, Dublin 2, D02 T380, Ireland. DIL is regulated by the Central Bank of Ireland (Registration No. C185067).
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