Wednesday, 29 June 2016
Last updated 51 min ago
Nov 27 2009 | 1:01pm ET
Sweden has backed down from the controversial pay restrictions it proposed the European Union impose on hedge fund and private equity managers.
In a new draft of the pay rules to be included in the EU’s hotly-debated alternative investment regulations, the Swedes, who hold the rotating presidency of the EU, have watered down their plans to force alts. firms to defer more than half of any bonuses for years.
The new draft would require hedge funds and private equity firms to defer bonuses “over a period which is appropriate in view of the life cycle and redemption policy” of a fund. It also adds a loophole, allowing pay to be “aligned with the nature of the risks” of a fund.
An earlier draft would have forced alternative investment firms to defer 40% to 60% of any bonuses for three years.