Europe’s Bonus Clampdown Hits Two-Thirds of Fund Managers
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The European Parliament’s vote to cap bonuses in the asset-management industry could affect two-thirds of senior fund managers in the U.K., U.S. funds in Europe and hedge funds open to small investors.
Bonuses should not exceed base salaries for managers of mutual funds regulated by the European Union, known as UCITS, European lawmakers in the economic and monetary affairs committee voted yesterday. The rules would cover 5 trillion euros ($6.5 trillion) of assets in UCITS, which include funds managed outside Europe and some linked to hedge-fund strategies such as John Paulson’s New York-based Paulson & Co. and Och-Ziff Capital Management Group LLC.