THE FINANCIAL Services Authority yesterday launched a long awaited consultation on how to turn EU-wide plans to cap hedge fund bonuses into UK law.
The EU rules – known as the Alternative Investment Fund Managers Directive – target the bonuses of senior executives at hedge funds and private equity funds and are set to limit bonuses in the same way bankers’ bonuses could be limited.
The FSA, along with the Treasury, needs to transpose the EU rules into law by July this year – but there will be a one year implementation period after that.
AIFMD is just one of a handful of directives from Europe set to target fund manager pay. A vote is due in the European tomorrow on another attempt to crackdown on the pay of Ucits fund managers.
The AIFMD consultation closes on 10 May.