The FCA has updated its webpage on the UCITS Remuneration Code (SYSC 19E) stating that it does not plan to issue guidance on how to apply this code.
The FCA also notes that on 31 March 2016 the European Securities and Markets Authority (ESMA) published its final guidelines on sound remuneration policies under the UCITS Directive and Alternative Investment Fund Managers’ Directive (AIFMD). The FCA states that it is currently considering its “comply or explain” position and will communicate a final decision to ESMA in due course. In the meantime the regulator states that while the ESMA guidelines apply to payments of variable remuneration relating to full performance periods commencing after 1 January 2017, this does not affect the timing of the application of the UCITS Remuneration Code.
The FCA also states that there are many points of correspondence between the remuneration requirements of the UCITS V Directive and the AIFMD, and between the ESMA guidelines applicable to each Directive, which firms may want to review.
View FCA will not issue guidance on application of UCITS Remuneration Code, 18 November 2016