Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Investment manager bonuses to be paid in own fund units

Investment manager bonuses to be paid in own fund units

Bonus payouts to asset managers will be made up of at least 50% of shares in their own funds under EU rules passed last night.

The changes outlined in UCITS V rules also stipulate that 40% of a manager's bonus must be deferred for three years, or 60% in the case of very high payouts.

After ratification - expected to take place in the next few weeks - EU members will have 18 months to introduce the legislation into domestic law.

The regulation will not affect private equity or hedge fund managers covered by parallel alternatives rules. 

'Today’s deal will deliver greater protection for investors, as well as taking steps to reduce reckless risk taking in the investment fund sector,' Sven Giegold, a German politician who helped pass the directive, said.

'The revised legislation includes important provisions on remuneration that will ensure the interests of investors are better reconciled with those of fund managers.'

But he added that 'the legislation fails to tackle the problem of performance fees for management companies, which are opaque and a rip-off for investors, unfairly reducing their income from funds.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Gutteridge puts the heat on Odey's asset allocation maestro with a couple of tough questions.

Brewin's Foster & Gutteridge: searching for the yield of dreams

Brewin's Foster & Gutteridge: searching for the yield of dreams

Guy Foster and Ben Gutteridge discuss the latest upbeat US payroll report and how it has increased the probability of a first hike in interest rates in June.

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter