Tax On Bonuses Among Proposed Amendments To EU Hedge Fund Bill

Feb 1 2010 | 1:08pm ET

Among the 1,000 proposed amendments to the European Union hedge fund regulation bill are measures that would curb its impact and tax fund manager bonuses.

Under the former, only hedge funds and private equity funds with more than €1 billion in assets under management would be covered by the proposed directive, which could impose strict new reporting and custody requirements, as well as possible leverage limits.

The directive as written by the European Commission is “poorly drafted,” the amendment’s sponsor, European Parliament member Syed Kamall, told Bloomberg News.

Kamall, a Conservative who represents London, argued that the regulations “should take account of the size of funds and not impose costs on small funds with no systemic importance which might force them to close.”

Another proposed amendment would take no heed whatever of that admonition. Luxembourg’s Robert Goebbels and Germany’s Udo Bullmann, members of the left-leaning Progressive Alliance of Socialists and Democrats, want heavy taxes imposed on bonuses if fund managers don’t adequately punish themselves for risk taking.

The amendment would place taxes of “more than 20%” on those fund managers that don’t take into account the risks inherent in their investments when they set their bonus policy.


In Depth

Fund Manager's Disease: Common Symptoms and Proposed Remedies

May 3 2016 | 6:11pm ET

The cadre of 25 research analysts at Murano Systems speaks with more than 150 investors...

Lifestyle

Point72's Cohen Donates $275M To Veterans Mental Health Network

Apr 6 2016 | 8:31pm ET

Billionaire hedge fund manager Steve Cohen has formed a non-profit aimed at treating...

Guest Contributor

Agecroft: Why NYCERS Should Reconsider Exiting All Hedge Funds

Apr 18 2016 | 5:51pm ET

The recent decision by the New York City Employment Retirement System to exit its...