View more on these topics

MEP warns industry to ‘stay alert’ over fresh EU bid to cap fund manager bonuses


Conservative MEP Syed Kamall has warned the asset management industry to “stay alert” to fresh EU proposals to cap fund manager bonuses.

Last month the European Parliament narrowly voted against capping fund manager bonuses under Ucits V rules but proposals could be resurrected in trialogue negotiations.

The UK strongly opposed the move after the introduction of a bankers’ bonus cap under CRDIV earlier this year.

Kamall says: “I hope we have seen it off but we don’t know whether another country may try and introduce it again at council during trialogue negotiations. We are hoping it is the high watermark of bashing for the finance sector.

“You can see a move down the round to place further restrictions on the asset management sector so we have to stay alert all the time.”

Investment Management Association prudential specialist Irving Henry says the fund manager bonus cap could also return if Ucits V is not finalised well before the next Parliament elections in May 2014. If the rules are not agreed then a fresh draft will have to be voted on again in the new European Parliament, which could include a bonus cap.

He says: “Unless it is nailed down by the middle of November or December this year then we will have a big fight on our hands in the new parliament.”

Clayden Associates director Dan Clayden says: “A fund manager bonus cap is uneccessary as long as incentives are tied to long-term quality.”



Lloyds first lender to join Help to Buy MIG as concerns grow over supply

Lloyds Banking Group has become the first major lender to commit to joining the second instalment of the Help to Buy scheme. Chancellor George Osborne produced a 50 page draft proposal of the scheme highlighting it could not be used for second homes or buy to let. He also highlighted that lenders would have to […]

Case study: Inheritance tax planning using multiple trusts

The problem: A client is looking to use the Rysaffe principle for the purpose of estate planning but I have heard HMRC is introducing changes to the rules. What issues need to be taken into account? Towards the end of April, HMRC published some guidance on the operation of the general anti-abuse rule in relation […]

It’s too soon to write Apple off

By Ali Unwin, Chief Technology Officer & Fund Manager at Neptune Earnings season is noisy in the technology sector and a good quarter does not make a good investment. Numbers that come in marginally ahead or behind ‘market expectations’ are extrapolated to produce narratives showing the rise or fall of companies. Our job as technology […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment