EU cracks down on hedge funds

 
City A.M. Reporter
EUROPEAN regulators published draft rules yesterday to crack down on excessive bonuses for managers of hedge funds.

The European Securities and Markets Authority (ESMA) said yesterday the curbs bankers’ face must be extended to managers of alternative investment funds, including hedge funds and private equity and real estate funds.

The rules could have a huge effect on hedge fund managers – the bulk of whose pay is from performance fees. Open for consultation until September, the rules bolster a law the EU has approved to force all alternative investment fund managers to undergo supervision.