UCITS V Bonus Plans and Remuneration Rules for Fund Managers

March 22, 2013

As widely reported in the financial press this week, the European Parliament’s Economic and Monetary Affairs Committee (ECON) voted today in favour of German Green Party MEP Sven Giegold’s proposal to cap bonuses for asset management staff at a 1:1 ratio with their annual salary (the “Giegold Proposal”). The Giegold Proposal, which has taken the asset management industry by surprise, was included as part of ECON’s final consideration of UCITS V, which also seeks to bring the rules relating to depositories and custody of assets in line with those already adopted with regard to the Alternative Investment Fund Managers Directive (AIFMD). The revised UCITS V text is not yet available and, accordingly, this OnPoint is based on press coverage, European Parliament Press Releases and discussions with industry bodies.

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