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, says PwC.
The main measures, aimed to align pay more closely with
risk, restrict the cash element...