AIMA

In parallel with work undertaken by Basel, the European Commission adopted legislative proposals in July 2009 on amendments to provisions relating to the trading book, re-securitisation and remuneration.  The final text agreed by the European Commission, Parliament and Council of Ministers was published in the Official Journal on 14 December 2010, with an implementation deadline of 31 December 2011.  Its key relevance to asset management firms was the introduction of remuneration rules.  Whilst many of the elements of the CRD III provisions had little real application in respect of the typical hedge fund  remuneration model, the agreed text contained explicit permission for such rules to be applied proportionately.  In the UK, these rules have been implemented through revisions to the FSA’s already existing Remuneration Code.