26 Jan 2012
The FSA has published a discussion paper, setting out some of the regulator’s provisional thinking in its approach to implementing the Alternative Investment Fund Managers (AIFM) Directive in the UK.
The 102-page discussion paper is an attempt to prepare for new, tougher rules on remuneration arrangements for all alternative investment fund managers. However, as a proportional directive, small hedge funds are likely to be exempt.
The AIFM directive sets out to ensure that funds will have to publish their compensation in terms of bonuses, fixed pay and, where relevant, carried interest.
The 102-page discussion paper is an attempt to prepare for new, tougher rules on remuneration arrangements for all alternative investment fund managers. However, as a proportional directive, small hedge funds are likely to be exempt.
The AIFM directive sets out to ensure that funds will have to publish their compensation in terms of bonuses, fixed pay and, where relevant, carried interest.
James Bennett, Managing Director of eFinancialCareers for EMEA & APAC, said: “The pressures of the AIFM directive are likely to prompt larger hedge funds to further build their risk and compliance teams. Meanwhile, the focus on only shaking up the remuneration practices of larger hedge funds means a potential gravitation of front office talent towards boutique operations, or may even encourage some experienced fund managers to start their own ventures.”
