Draconian Hedge Fund Pay Rules Loosened

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.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note