EU to crack down on hedge fund managers' pay

The European Union is considering imposing tough new measures to curb the pay of private equity and hedge fund managers in a further clampdown on the sector.

The proposals form part of an amendment put forward by the Swedish Council to the EU's Alternative Investment Fund Managers Directive (AIFD), which could result in managers being forced to defer up to 60% of their annul pay. Draft documents include plans to spread 40% of managers' remuneration over three years and to defer up to 60% of remuneration in cases where variable pay is very high. But there are fears that the proposal could force the sector, which is mainly based in London, into exile. According to reports, BlueCrest Capital, one of the UK's largest hedge funds, has alread...