EU May Adjust Fund-Manager Pay Rule To Mirror Banker Curb

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The European Parliament may ease a planned ban on fund-manager bonuses that exceed fixed pay if investors are allowed to vote on the larger awards, the lawmaker leading work on the standards said.

Bloomberg reports that the parliament’s economic and monetary affairs committee approved a ban last week on fund-manager bonuses higher than salaries as well as curbs on performance fees on a 22-16 vote. Legislators plan talks on the draft rules for managers of so-called UCITS funds ahead of a vote by the full assembly in May, Sven Giegold said in an interview.

The parliament’s economic and monetary affairs committee approved a ban last week on fund-manager bonuses higher than salaries as well as curbs on performance fees on a 22-16 vote. Legislators plan talks on the draft rules for managers of so-called UCITS funds ahead of a vote by the full assembly in May, Sven Giegold said in an interview.

If the fund industry came up with a clear solution to ensure investors got a vote on pay, 'I would welcome that', Giegold said. 'I would be very happy to include that in the legislation. It would be a boost for shareholder democracy'.

The draft rules for fund managers go beyond planned EU curbs on banker pay, which allow bonuses of as much as twice fixed pay. Both sets of plans have prompted warnings from the financial industry that the legislation could drive up fixed costs and harm European competitiveness.

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EU May Adjust Fund-Manager Pay Rule to Mirror Banker Curb

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