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UK hedge funds to be hit by EU capital requirements directive
July 30, 2010
UK hedge funds will be affected by the European Union's capital requirements directive (CRD3), the UK Financial Services Authority (FSA) has confirmed.
The FSA now plans to update its Remuneration Code to take on board the new requirements. CRD3 will come into force on January 1, 2011 and the FSA has urged companies to prepare for the code's introduction.
This EU legislation, according to the FSA's consultation paper, will force hedge funds and other financial institutions including all asset managers and Ucits investment companies to limit bonuses as well as adopt other requirements.
Under the regulations at least 40pc of a bonus must be deferred over three years. If a bonus exceeds GBP500,000, at least 60pc of that must be deferred.
Original Posting At: HedgeFundsReview
The FSA now plans to update its Remuneration Code to take on board the new requirements. CRD3 will come into force on January 1, 2011 and the FSA has urged companies to prepare for the code's introduction.
This EU legislation, according to the FSA's consultation paper, will force hedge funds and other financial institutions including all asset managers and Ucits investment companies to limit bonuses as well as adopt other requirements.
Under the regulations at least 40pc of a bonus must be deferred over three years. If a bonus exceeds GBP500,000, at least 60pc of that must be deferred.
Original Posting At: HedgeFundsReview
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