FSA targets hedge fund and private equity pay

The FSA has launched a consultation on regulations for hedge funds and private equity firms that will form the basis for tough new rules on pay.

The 102-page discussion paper is part of the regulator's attempt to prepare for new rules which will shake up regulation across Europe for all alternative investment fund managers, the Telegraph reports. The move comes after the FSA expanded its code for bankers' bonuses to include hedge funds last year.  PwC partner Jon Terry said: "Banks, credit institutions and investment firms are already subject to regulation of their remuneration arrangements, and the FSA's discussion paper is the first step for introducing similar rules to so-called alternative businesses. Given the links between ...