Fund Managers Face Longer Wait for Bonuses Under EU Rules
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Senior hedge-fund and private-equity managers face longer waits for bonuses under proposals from the European Union’s top markets regulator.
Bonuses for risk-taking employees should be withheld for a certain length of time to align managers’ interests with the long-term performance of the fund, the European Securities and Markets Authority said today. Staff with the “most material impact on the risk profile” of the fund should be subject to longer retention periods, ESMA said without specifying how long.