The FCA has published general guidance on the AIFM Remuneration Code, contained in chapter 19B of the Senior Management Arrangements, Systems and Controls sourcebook (SYSC 19B). The guidance is to be interpreted as if it were an Annex to SYSC 19B.1.
The guidance has effect from 31 January 2014 and is directed to firms authorised as full-scope UK alternative investment fund managers (AIFMs) under the Alternative Investment Fund Managers Directive (AlFMD). The FCA expects firms to implement the AIFMD remuneration regime for new awards of variable remuneration to relevant staff for performance periods following that in which the firm becomes authorised. Amongst other things, the guidance covers:
- applying proportionality to AIFMs, delegates of the AIFM, AIFM remuneration code staff at an AIFM performing permitted business not involving the management of AIFs and remuneration committees (the annex to the guidance contains example of how to apply proportionality);
- how to treat payments to partners or members of an AIFM;
- remuneration in the form of units, shares and other instruments; and
- minimum retention periods.
View General guidance on the AIFM remuneration code, 31 January 2014