Skip to content

Fund Managers’ Bonuses Next in the Firing Line

On 21 March 2013, the EU Parliament published a press release which confirmed that it had voted to cap UCITS fund manager bonuses at a ratio of 1:1 between bonus and salary, with 50% of bonus being paid in units of the UCITS being managed.  The press release also notes that “salaries” must be linked to a fund’s performance, but presumably this should refer to “bonuses”.  Apparently, the new rules are meant to end the “gambler mentality” in the investment fund sector.  In reality, it looks more likely to result in an increase in fixed costs of running a UCITS fund with a consequential drag on performance.

Contact Us
Press enter or esc to cancel