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.

Sign in or Register to continue reading this article

Sign in

Register

It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer

 

Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.

 

Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.

 

Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

View more analysis from The Lawyer

Overview

Lacon House
84 Theobald's Road
London
WC1X 8RW
UK
http://www.nabarro.com

Turnover (£m): 116.70
No. of lawyers: 405