Remuneration rules under AIFMD — final guidelines from ESMA
The European Securities and Markets Authority (ESMA) recently published final guidelines on remuneration under the Alternative Investment Fund Managers Directive (AIFMD).
Remuneration policies of managers (AIFMs) of alternative investment funds (AIFs) must broadly promote sound and effective risk management and not encourage risk taking which is inconsistent with the risk profiles and rules of the AIFs they manage.
ESMA’s guidelines confirm that for many, the prescriptive arrangements for aligning pay with risk will require changes to an AIFM’s policies and practices on pay. They also provide some helpful clarity, for instance:
- Proportionality: in some cases (in the context of an AIFM’s size, nature and scope of its activities) an AIFM can disapply some of the remuneration requirements altogether.
- Transitional provisions: existing AIFMs have a year’s grace to comply with the remuneration requirements, i.e. until 22 July 2014.
- Disclosure: there is no mandatory requirement for remuneration information to be made public.
If you are registered and logged in to the site, click on the link below to read the rest of the Nabarro briefing. If not, please register or sign in with your details below.
Click on the link above to download this briefing.
News from Nabarro
Briefings from Nabarro
The Safe Harbor scheme is of key importance to transatlantic trade.
Mr Mitchell’s solicitors have been denied the ability to recover costs, estimated to be in excess of £500,000, because they failed to file a costs budget on time.
Analysis from The Lawyer
Real estate continues to be the key money spinner for Nabarro, which has always been known for its work in the UK property market, (although) last year results were up across the firm. Google’s ...
A few UK200 firms – such as DWF – have managed to grow in the downturn. A few, such as Berwin Leighton Paisner, have come back stronger than ever after a wobble. Nabarro fits into neither category.