MEPs vote to cap fund manager bonuses


European politicians have voted to reform the bonus structure of fund managers, a move which puts the UK at a "competitive disadvantage" and could damage shareholder value, according to PwC.

The European Parliament's economic and monetary affairs committee voted in favour of the proposals this morning, with a full Parliamentary vote and debate the next steps in the process. Tim Wright, director of PwC's consulting advice to the asset management industry, said proposals from Brussels on UCITS V aiming to enforce a maximum 1:1 ratio of bonus to salary pose "real risks" to major UK asset managers. The proposals also advocate paying half of any bonus in the form of shares or units in a firm's own funds. Wright said the new regulations would put Europe at a competitive disa...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
 Be the first to hear about our events and awards programmes.



Already a Professional Adviser member?


More on Managed solutions

by Justin Onuekwusi, head of retail multi asset funds at LGIM will lead the MPS

Richmond Wealth partners with LGIM for model portfolios

Six model portfolios are set to be created as part of the collaboration

Kathleen Gallagher
clock 20 February 2023 • 1 min read
Assessing the many nuances of model portfolio construction

Assessing the many nuances of model portfolio construction

'Evidence-based investing is simple in concept but complex in execution'

Yariv Haim
clock 15 February 2023 • 5 min read
Titan Wealth to manage LEBC/Aspira MPS investments

Titan Wealth to manage LEBC/Aspira MPS investments

Investment house and advice firm in strategic partnership

Jenna Brown
clock 23 January 2023 • 1 min read