Wednesday, 17 September 2014
Last updated 10 hours ago
Jul 1 2010 | 2:03pm ET
Hedge fund managers may have dodged the European Union’s controversial proposed alternative investment rules for the time being, but they won’t dodge the tough bonus restrictions included in that directive.
EU fund managers will be subject to new compensation and bonus rules expected to be approved by the European Parliament next week, as most firms—those owned by insurance companies are notably excepted—will be considered credit institutions under the bank pay rules.
Under the proposal, no more than half a hedge fund manager’s total compensation can be paid out as a bonus. What’s more, only 30% of bonuses can come in the form of cash, and at least 40% must be deferred for a period of years.
How, exactly, hedge funds are to meet the second requirement is unclear. Banks will be forced to pay out the bulk of their bonuses in stock, but most hedge fund managers are not publicly-listed.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.