U.K. FSA Mulls Alts. Bonus Rules

Jan 25 2012 | 7:19am ET

British regulators may extend compensation and bonus rules for banks to alternative investment firms.

The Financial Services Authority is considering how to come into compliance with a 2010 European Union law, which gives the new European Securities and Markets Authority power to regulate hedge fund and private equity pay. ESMA has yet to set those compensation standards—and the FSA believes its current rules may be good enough—but the U.K. markets watchdog is moving forward, anyway.

The FSA said it may create “a remuneration code to apply specifically to Alternative Investment Fund Managers, but modeled closely on the existing code” for banks and other financial services firms. Such rules would be designed to “control risk-taking behavior by reducing the potential adverse impact of poorly-defined remuneration schemes.”


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

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…