FSA Proposal Would Allow U.K. Hedge Funds To Opt Out Of Bonus Rules

Nov 16 2010 | 2:16pm ET

British hedge fund managers may skirt tough new European bonus restrictions, after all, with the Financial Services Authority mulling an opt-out.

Under the new proposal, hedge funds would be given the opportunity to explain why they cannot comply with the EU-imposed bonus limits, which would require at least half of any variable compensation to be paid in shares or some equivalent non-cash instruments. The proposal could even give large, listed firms, including the Man Group, the opportunity to escape the restrictions as a competitive disadvantage, Bloomberg News reports.

Creating a "comply or explain"  exemption was backed last month by the Committee of European Banking Supervisors.

The FSA may also extend the deadline for compliance from January to June.

The regulator earlier this year sent a shiver down hedge fund spines when it announced that it would extend bonus rules that already apply to its 27 largest lenders to more than 2,500 firms, including asset and hedge fund managers. The regulator has said, however, that it would seek to apply those rules "proportionally."


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this race. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    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…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.