Setting up a Remuneration Committee under the AIFMD

Jerome Lussan and Petra Hollis, of Laven Partners, talk to HFMWeek about the challenges in setting up a remuneration committee under the AIFMD.

The requirement to appoint a remuneration committee is new for the alternative investment industry. Although some fund managers in the UK are already subject to the remuneration provisions of the Capital Requirements Directive, the remuneration rules introduced by the AIFMD will present new challenges for all AIFMs.

The remuneration committee’s appointment and operations are still somewhat murky for asset managers, even three months aft er the implementation of the AIFMD.

Common challenges include not knowing if a remuneration committee is needed and not knowing how to establish an effective remuneration committee. Luckily, AIFMs can benefit from the experience of listed companies and financial institutions that are already subject to a remuneration committee requirement. We take a look at some of the possible solutions offered by comparable regimes, as well as discuss the existing guidance on the AIFMD remuneration requirements.
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