European Hedge Fund Managers Face Increased Questioning over Pay Structures
Friday, November 13, 2009 : PermalinkNew York (HedgeCo.net) – A draft copy of a law obtained by Ruters from the European Commission is looking at how hedge funds are paid, and may ask hedge fund managers to prove that the pay structure does not encourage risk-taking.
The pay structure recommended by the Swedish contingent of the European Commission demands a balance for the amount that hedge fund managers get paid as salary and bonuses. Among other conditions, the new law demands that “variable remuneration” spread over “at least three years” and in cases where the “variable element is particularly high”, then 60pc of the pay should be deferred.
“Because of these looming hedge fund regulations put forward by the European Commission, we very likely to see London lose its reputation as a hedge fund hot spot. ” said Andrew Schneider, Co-founder of HedgeCo Networks.
BlueCrest Capital Management, the $15.4 billion hedge fund has joined Europe’s largest hedge fund, Brevan Howard Asset Management LLP, to announce the creation of offices in Switzerland. BlueCrest Capital management is planning to move a 50 of their 300 employees from their London office to a Geneva based office which will not be under the jurisdiction of the European Commission.
Hedge funds are demanding an alteration to the proposal.
Aaron Wormus
Contributing Writer, HedgeCo.net
news@hedgeco.net
HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership in HedgeCo.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!