Buried in the recent consultation paper on the Alternative
Investment Fund Managers Directive (AIFMD) are stringent rules
on pay that will have far-reaching consequences for the asset
management industry, according to PwC.
The rules, set by the European Securities and Markets
Authority, will affect alternative investment firms that
previously seemed to have escaped the FSA’s
regulations on bank pay, including many hedge funds and private
equity houses. They will also mean more onerous restrictions
for those investment firms already caught by the FSA
requirements, and could even hit some firms outside Europe,
The main measures, aimed to align pay more closely with
risk, restrict the cash element...