Funds caught by EU bonus crackdown

Hedge funds and asset managers will be caught by the EU-led crackdown on bankers' bonuses, it emerged last night.

According to the BBC, new limits imposed on bankers' windfalls, including capping the cash portion and staggering payments over a minimum of three years, will also hit senior executives at hedge funds and fund managers. It says the new rules will place the pay of hedge fund managers in the City of London, where 80% of European funds are based, under regulation for the first time. Experts say there is now a strong probability it will encourage some of them to relocate outside the EU, to financial centres such as Geneva in Switzerland. Under a deal agreed with the European Parliament...