MFA submitted a comment letter to the UK Financial Conduct Authority, in response to the FCA’s proposed guidance on implementing the remuneration provisions of the AIFMD. In the comment letter, MFA encouraged the FCA to:
- Limit the remuneration provisions to EU AIFMs and not to extend the rules to delegates of EU AIFMs, which MFA believes would be consistent with the approach taken in the Level 1 text of the AIFMD, as well as comparable remuneration rules in other EU financial services directives and related guidance;
- Amend the FCA’s suggested implementation approaches to determine what payments are made in connection with a person’s ownership interest in an AIFM, to better achieve the stated principle of excluding such payments from the remuneration rules; and,
- Ensure that the deferral requirements in the rules take into account tax implications for AIFM employees in the relevant jurisdiction(s) of covered employees.