European Regulators Propose Caps On Fund Managers' Pay

Law360, New York (June 28, 2012, 3:04 PM EDT) -- European securities regulators on Thursday proposed new rules for limiting pay for employees of alternative investment funds, part of the continent's broader tightening of rules on such funds and crackdown on bankers' pay.

The European Securities and Markets Authority put forward guidance that would require managers at hedge funds, private equity funds and real estate funds, as well as other alternative investment vehicles, to receive only a portion of any bonuses up front in cash. The rest must be paid in deferred compensation in order to...
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