Europe agrees deal on fund manager bonuses

EU policymakers have agreed a deal on pay in the asset management industry which includes a requirement that fund managers be paid half of any bonuses in units of their own funds.

Late yesterday policymakers approved the rule changes, which will also mean fund managers must defer 40% of any bonuses for at least three years, or 60% if bonuses are particularly high. The new rules are set to become law in 2016 and follow negotiations between regulators and trade bodies across Europe. For years critics of the fund management industry have argued managers' interests must be more closely aligned with their investors. Although many UK-based fund managers invest in their own funds, the new rules will ensure this takes place across the €6.3trn European fund management i...