The European Securities and Markets Authority ("ESMA") has published final guidelines (the "Guidelines") on remuneration of alternative investment fund managers ("AIFM"). The publication of the Guidelines follows a consultation on draft remuneration guidelines which closed in September 2012. The Alternative Investment Fund Managers Directive ("AIFMD") establishes a set of rules that AIFMs must comply with when establishing and applying a remuneration policy for certain categories of their staff and the Guidelines are intended to further clarify the AIFMD provisions.
Which entities / individuals are affected?
The remuneration provisions in the AIFMD apply to all AIFM that fall within its scope. The Guidelines will apply to identified staff whose professional activities might have a material impact on the profile of the alternative investment fund ("AIF"). This includes:
senior management, risk takers, control functions; and any employee receiving a total remuneration that takes them into the same remuneration bracket as the aforementioned categories of staff. Application to delegates of the AIFM
The identified staff to whom the Guidelines will apply are defined to include "categories of staff of the entity(ies) to which portfolio management or risk management activities have been delegated by the AIFM". The Guidelines require that either:
the entities to which portfolio management or risk management activities have been...