Cross-party British MEPs have attacked the proposed EU cap on fund manager bonuses but have played down the chances of overturning the plans.
Last month the economic and monetary affairs committee voted to cap fund manager bonuses at 100 per cent of their salary with half being paid in shares in the funds they manage.
The move is fuelled by concerns that bankers’ may use Ucits rules to dodge the bank bonus cap and will be put to a European parliamentary vote next month.
ECON chair and Liberal Democrat MEP Sharon Bowles says: “Some think it is fine to copy and paste the bankers’ bonus cap but it is not the same business model and it should be something else.
“I’m annoyed about it. Although the industry didn’t agree there was a logic behind the bank bonus cap and I don’t think the same logic applies here. It looks like lashing out at the industry and undermines the our position that the banks are special.”
Conservative MEP Syed Kamall says: “It is clearly now about politicians not liking high pay rather than trying to tackle systemic risk. There is an argument for financial stability for the bankers’ bonus cap but you can’t make that argument for Ucits managers.”
Bowles is “not optimistic” about preventing a cap but key negotiator German MEP Sven Giegold has indicated he is willing to compromise.
Investment Management Association chief executive Daniel Godfrey says: “People are interestede in pay so we stand ready to show there are clear linkages to performance and sensible remuneration.”