EU hedge funds face salary restrictions
Some fund managers in Europe may be subject to the accident and strict salary limits. EU supervision of hedge funds and private equity industry’s first attempt to become a reality in the next year.
More and more people in the industry warned that the draft guidance on how to implement this law, may count a large fund of more than initially thought the implementation of a variety of restrictive measures, such as bonus deferral and recover – the banking sector has been implemented for these restrictive measures.
These initiatives, if strictly implemented, a thorough reform of the prevailing salary practices in the industry, these initiatives have been included in the Alternative Investment Fund Managers Directive (Alternative Investment Fund Managers Directive, AIFMD), this highly controversial EU law must be in July 2013 months before implementation.http://blog.livedoor.jp/xtc668-xtc668/
Technically, the implementation of the provisions of the Bank salary last year, the number of investment companies are also restricted within the range. However, the British guide to almost all investment companies from most of its provisions limit.
Hedge funds had expected that the City of London oversight body – the UK’s Financial Services Authority (FSA) to implement the Alternative Investment Fund Managers Directive the same principle, not that they will float at least 40% of the wage postponed for three to five years to receive, or “bad” performance included in the prize money to recover the provisions.
European Securities Markets Authority (ESMA) last month introduced the draft guidance, there is no domestic regulatory bodies, how to actually make some funds from the most stringent limit to a clear method. Although these requirements will be adjusted according to the company’s size and risk, but the lack of broad immunity would mean more fund managers will be affected.
Partner of PricewaterhouseCoopers (PwC), Joan Terry said that there are significant uncertainties may have a significant impact on the affected fund rules (Jon Terry). These restrictions also pose a potential profit-sharing model used by the private equity fund.
The supervision of the employees income level is an extremely sensitive topic in the hedge fund industry. Over the years, the hedge funds to their members to pay the salary level has been higher than other areas of the financial industry.
Many hedge fund managers insist that sometimes this very jealous of the pay level is a necessary means to attract and retain the best talent. Hedge funds typically take a partner system, and most of their profit from their trading profits 20% commission.
A London-based hedge fund executives said: “The pay system is the hedge fund industry on one of the few things we make money on the premise of our clients earn more money.”http://www.eachrolex.com/
The fund manager professional services consulting firm Sigma Partnership Joe Hitt (Joe Seet), bonus deferment and the recovery provisions “totally unreasonable”.
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