Do the remuneration rules also apply to hedge fund managers ?
Hedge funds as such will be subject to separate legislation – the alternative investment fund managers directive – which is currently under negotiation. Hedge Fund managers who are investment firms as defined by the markets in financial instruments directive are covered, although the text makes it clear that these rules should be applied proportionately to investment firms. The underlying principle is that when investors’ money is put at risk, the investing firm’s incentives should be aligned with theirs.
