UK: Guide to the AIFMD remuneration rules

On 28 June 2012, the European Securities and Markets Authority published its Consultation Paper on its proposed guidelines on the remuneration of alternative investment fund managers. The guidelines are intended to clarify the application of the rules contained in the Alternative Investment Fund Managers Directive (the "AIFMD") with which fund managers will be required to comply in respect of their remuneration policies and practices.

Following the ESMA Consultation, which closes on 27 September 2012, ESMA will produce its final guidelines, which will then be used by the Financial Services Authority in implementing the AIFMD Remuneration Rules in the UK.  The FSA is required to implement the rules in the UK by 22 July 2013; however, given the length of time involved in reviewing remuneration structures, fund managers should now start to consider what impact the AIFMD Remuneration Rules will have on them. 

We have prepared a Guide to the AIFMD Remuneration Rules, in which we  discuss the key issues that arise from the AIFMD Remuneration Rules and the ESMA Consultation, highlight  the areas where the impact of the AIFMD Remuneration Rules remains unclear, and draw out the similarities, and the differences, between the AIFMD Remuneration Rules and the provisions of the FSA Remuneration Code to which many fund managers will already be subject to some degree. 

The Guide also includes as an Annex a summary of the specific requirements of the AIFMD Remuneration Rules which can be used as a reference tool.

To request a copy please click here.