A group of fund managers has warned that pending European Union bankers bonus cap rules could damage a significant part of London’s financial services sector.
The Telegraph reports that The New City Initiative (NCI), a group consisting largely of long-only fund managers, has said that a European Parliament vote in early June could have a number of unintended consequences on fund managers.
The NCI, whose members include Terry Smith’s Fundsmith, Fleming Family & Partners and Neptune Investment Management, has warned that the new rules will push independent fund managers into becoming “asset gathering behemoths” who are rewarded for size and not performance.
Dominic Johnson, founding partner of Somerset Capital who sits on the board of NCI, said that the idea to reduce risk through limiting performance-related pay was the wrong measure.
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