Bloomberg reports that the assembly’s economic and monetary affairs committee voted in favor of a ban on managers of EU regulated mutual funds, known as UCITS, from receiving bonuses larger than their fixed pay.
'Today’s vote would ensure greater protection for investors and help reduce excessively risky speculation', Sven Giegold, the legislator leading work on the draft measures in the assembly, said in an e-mailed statement. 'The rules as voted today would be an important step towards ending the gambler mentality in the investment fund sector'.
The move comes as European Parliament lawmakers and Ireland, which holds the rotating presidency of the EU, confirmed a compromise deal overhauling bank capital and liquidity rules for the 27-nation EU.
That law will ban banker bonuses that are more than twice fixed pay, with scope for as much as a quarter of the bonus to be valued at a discount if payment is deferred for at least five years.
Hit the link below to access the complete Bloomberg article:
EU Targets Fund Manager Pay After Clinching Banker Curbs
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