FCA publishes draft guidance on AIFM Remuneration Code

FCA publishes draft guidance on AIFM Remuneration Code


Last week the FCA published its Quarterly Consultation Paper, which includes a consultation on guidance to the AIFM Remuneration Code.

The consultation will run until 6 November 2013, with the final guidance expected to follow by early 2014.

The FCA hopes that it will enable AIFMs to implement appropriate remuneration policies in advance of the end of the transitional period on 22 July 2014, by which time all UK AIFMs will have had to obtain authorisation or become registered.

The guidance will be more comprehensive than the guidelines published by the European Securities and Markets Authority (ESMA) on 3 July 2013, and will be added to the section of the FCA Handbook (SYSC 19B) which contains the AIFM Remuneration Code.

As we mentioned in our August newsletter, there is currently a lot of uncertainty regarding the application of the principle of proportionality to the AIFMD.

This guidance is particularly intended to clarify proportionality insofar as it relates to the remuneration payment process of payments made to partners or members of AIFMs established as partnerships or LLPs.