Politics & Regulation

Sweeping changes to pay expected to impact hedge funds, says PwC


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